Common currency in BRICS countries is on the agenda

Brazilian President Luiz Inácio Lula Da Silva called for a common currency for BRICS member countries. Stating that BRICS member countries have different economic conditions, analysts think that integration in the common currency will be difficult regionally.

Brazilian President Lula Da Silva called for a common currency to BRICS member countries. Lula da Silva, at a press conference with Venezuelan President Nicolas Maduro, stated that he dreams of a BRICS common currency. In his speech, Lula Da Silva also emphasized that the BRICS common currency will allow member countries to be more free to do business and negotiate without being dependent on the US dollar.

On the other hand, Lula Da Silva stated that he is in favor of Venezuela being included in the BRICS group, “We will discuss this soon and we need to evaluate various integration requests.” said.

“Russia and Venezuela are subject to sanctions”

Bloomberg Correspondent Andrew Rosati, in his evaluation on the subject, stated that Lula Da Silva has been calling for a common currency for many years, and used the following statements: “Actually, it is a very difficult process, because we are talking about the economies of different countries. For example, the inflation rate in Brazil is 4 percent, while in Argentina it is over 100 percent. There is a big difference between the two countries in terms of inflation. So this is not possible. There is a question mark in mind about how realistic this currency can be. Lula also urged Venezuela to join the BRICS. Both Russia and Venezuela are from countries subject to sanctions by the US and other countries. So this can make the process very complicated.”

What is BRICS?

The BRICS group of countries, consisting of Brazil, Russia, China, India and South Africa, aims to develop diplomatic, security and economic cooperation among its member states.

The total gross domestic product (GDP) of the BRICS countries, which host 40 percent of the world’s population, constitutes more than one fourth of the global product.