BRICS Nations Urged to Exercise Caution When Discussing Common Currency
• South African Minister of International Relations Naledi Pandor has cautioned BRICS countries against making a hasty decision on launching a common currency.
• Although many countries have expressed their willingness to de-dollarize, some experts have said the much anticipated U.S. dollar collapse will not happen anytime soon.
• South Africa’s debt is primarily denominated in dollars, and therefore the country cannot easily ditch the greenback.
South African Minister Warns Against Hasty Decision
The South African minister of international relations, Naledi Pandor, has urged Brazil, Russia, India, China and South Africa (BRICS) countries to be wary of making a hurried decision when they meet in August to discuss launching a common currency. With just a few months before all five nations converge in Johannesburg to discuss this issue, Pandor said her country will “not shy away from discussions” that relate to her country’s national interests.
Growing Calls for Alternative Currency
The call for an alternative to the greenback are growing with Russia leading the calls for the creation of an alternative currency due to its sanctions by the U.S and European Union governments. However, Dave Ramsey a financial expert claim that BRICS nations lack the muscle to take down the dollar while other experts say that it wont happen anytime soon.
South Africa’s Debt Denominated in Dollar
South Africa’s debt is primarily denominated in dollars; therefore the country cannot easily ditch the greenback despite their willingness to do so due to their national interests.
Pandor’s Warning
In response to these rising calls for an alternative currency, Pandor warned member states should guard against making a hurried decision as economics can be very difficult especially during times of low growth and economic crises like now. She added that all nations must be taken into consideration when discussing this matter and it should be done responsibly without haste or preemption by leaders meeting at Johannesburg .
Conclusion
It is still uncertain if BRICS nations will launch a common currency or not but one thing is certain no one should rush into such decisions without taking into consideration all factors involved including those of other member states as well as economic difficulties faced by each nation due to low growth rate or crisis like now .