The BRICS countries (Brazil, Russia, India, China, and South Africa) are working on establishing a new reserve currency to better serve their economic interests, ambassador at large of Russia’s Foreign Ministry Pavel Knyazev said this week. It will be based on a basket of the currencies of the five-nation bloc.
“The possibility and prospects of setting up a common single currency based on a basket of currencies of the BRICS countries is being discussed,” Knyazev said during a discussion about expanding BRICS and the Shanghai Cooperation Organization.
According to the diplomat, member states are “actively studying mechanisms” to exchange financial information to develop a reliable alternative for international payments.
Related: Islamabad is reportedly aiming to get rid of the US dollar in economic cooperation with Moscow
The possibility of trading with Russia in rubles and Chinese yuan is being considered in Pakistan, President of the Trade House of Pakistan Association Zahid Ali Khan told reporters on Tuesday, (Sep 27) as quoted by TASS.
“We are still trading in dollars, which is a problem… We are considering the issue of trading in rubles or in yuan, but the issue is still being finalized,” said Ali Khan, executive director of the Russia-Pakistan Business Council at the Russian Chamber of Commerce and Industry.
The official, who was taking part in the ‘Export Marathon’ international forum in Ekaterinburg, Russia, noted that the transition to ruble-yuan use in trade could occur next year.