Who is stronger?
Brazil, Russia, India, China, and South Africa as presiding country, are convening to consider membership requests from 22 countries, including Egypt, the United Arab Emirates, Argentina, Saudi Arabia, and Iran.
Can the bloc, also seen as a counterbalance to the G7 group of the world's most developed countries, agree on an alternative to the US dollar, as reported by RTS?
A question that keeps the leftist leader of Brazil awake at night. Why do all countries have to trade in dollars? BRICS members have already exceeded a quarter of their mutual trade in national currencies. And their goal is for this to reach a third in the next three years.
"It's much cheaper to trade in some other currencies, and that's why we've seen a trend of trading in yuan, rubles, rupees, and other national currencies. Not all these countries are BRICS members; some are members of the Shanghai Cooperation Organization or ASEAN, which have also decided not to trade in dollars, euros, or yen in the future," explains Prof. Dragana Mitrovi from the Faculty of Political Sciences.
However, more than 80 percent of international transactions and over half of the foreign exchange reserves are still in dollars. That's why the dominance of the dollar is unquestionable for U.S. Treasury Secretary Janet Yellen. Many would question it - Russia due to sanctions, China due to Washington's economic nationalism. Others, because they await any increase in the U.S. Federal Reserve's benchmark interest rates with unease.
Professor Mitrovi, however, believes that another currency won't replace the dollar because, as she says, the mentioned countries don't have a common monetary policy and alignment of legal and economic policies.
"But work is being done on a digital or...