BRICS money can protect against exchange rate fluctuations

The common currency of the BRICS group (Brazil, Russia, India, China and South Africa), being created, will protect countries from the risks generated by exchange rate fluctuations in bilateral trade, said Yevgeny Kalyanov, of the financial services company BCS World of Investments, told Sputnik. "Creating a single currency for the BRICS countries will avoid the risks of sudden changes in trade operations, as currencies of developing countries are highly volatile," he said.

According to the expert, the currency "will be supranational" and countries will not have to abandon their national currencies, "as happened with the arrival of the euro". Furthermore, this currency will allow, in commercial transactions, to renounce the conversion through the dollar, he explained. The deputy director of the competence center of the National Technological Initiative at Moscow State University, Sergey Trostyansky, stressed that "there is obviously a tendency to use the dollar less and less in international payments."

“But although many agree that we need to phase out the dollar, there is still no consensus on alternatives, even within the BRICS,” Trostyansky said. The BRICS group is an intergovernmental economic and trade partnership of five countries in rapid development accounting for more than 20% of global gross domestic product and 42% of the world's population. Recently, countries like Argentina, Saudi Arabia, Algeria, Egypt, Indonesia, Iran, Turkey and others have shown interest in joining the group.