BRICS launches ‘working group’ to study reference currency for trade: Brazil’s Lula

Brazil’s President Lula da Silva said the group of major emerging economies has started a “working group to study a reference currency for BRICS,” in his opening remarks at the summit’s conclusion on Friday.

For all the latest headlines follow our Google News channel online or via the app.

A reference currency is the primary investment legal tender used to carry out all foreign bank transactions for a specific exchange rate.

Lula has been the strongest voice in the bloc advocating for a common BRICS currency to conduct cross-border trade within the bloc and reduce the group’s reliance on the US dollar.

#BRICSza | President Lula da Silva in his remarks says that BRICS has started a working group to study a reference currency for BRICS.
With its expansion, the GDP of BRICS is now 36% of global GDP and 47% of the world’s population. #BRICSSummit2023 #BRICS

— BRICSza (@BRICSza) August 24, 2023

“Lula has been on a diplomatic world tour, where in every stop in the global south, he seems to mention his desire to move away from dollar dominance and move into doing trade in other types of currencies,” said Ryan Berg, Center for Strategic and International Studies, at an expert panel ahead of the BRICS summit.

BRICS leaders also announced the bloc’s expansion, extending invitation to Iran, Argentina, Egypt, Ethiopia, UAE and Saudi Arabia to become members of the group. The membership will take effect from January 2024.

Read more:

BRICS to admit six new members including Saudi Arabia, UAE next year

BRICS leaders discuss Ukraine war, de-dollarization, expansion plans during summit

Brazil’s Lula says BRICS group not meant to challenge G7, US