BRICS Gold-Backed Common Currency A Shock To Global Fiat Money System, Says Economist, As Russia Confirms Launch In August
What Happened: Brazil, Russia, India, China and South Africa, a coalition of nations going by the moniker BRICS, is set to introduce a new currency backed by gold, Russian English news channel RT reported.
An official announcement in this regard will be made at the bloc’s summit in Johannesburg, South Africa, in August. “With the growing initiative, more and more countries are lining-up to join the group,” RT said.
Willem MiddelKoop, a former journalist, tweeted that 41 countries have applied for BRICS-membership.
There You Go – It’s Official
‘BRICS planning to introduce new trading currency backed by gold at August summit’
‘Gold standard will be a great benefit to strengthening single currency’
‘41 countries have applied for BRICS-membership’
What’s BRICS Common Currency: The BRICS nations announced in April that they plan to introduce a new currency with an objective of boosting intra-BRICS trade and also eliminating higher dollar conversion costs of international transactions.
Opinions are divided over whether such a common currency would hurt the dollar’s dominance.
It is unlikely to replace the dollar and would exist only as an addition to the established dollar-based global monetary system, a report by the Official Monetary and Financial Institutions Forum said. “It will be a regional initiative rather like the euro,” it added.
Source:Investing.com
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