BRICS pushes for common currency, in an attempt to reduce dependence on the US dollar

The BRICS are advancing the progress of their common currency, while actively promoting the use of member states’ local currencies to reduce the risks of relying exclusively on the US dollar, said South African Ambassador to China Siyabonga Cyprian Cwele, to the Global Times on Friday.

In an interview on the sidelines of a reception organized by the South African embassy in China to mark the 30th anniversary of the country’s freedom, Cwele also praised China-South Africa bilateral ties and refuted slander against China’s cooperation with Africa.

With regard to the BRICS currency, the working group formed by the finance ministers of the member states will take place in May to advance the corresponding discussions, focusing on key issues, including promoting greater stability of the international monetary and financial systems, said the South African envoy. .

Cwele highlighted the importance of supporting the use of local currencies with the open sharing of financial data, while also looking to digital currencies as ways to explore multiple, stable trading and settlement mechanisms to reduce risks such as sanctions. , as it only depends on a single currency.

Amid the rapid development of technologies such as artificial intelligence, Cwele noted that the BRICS support technology as proper adaptation of new technologies is beneficial for everyone.

Regarding the expansion of BRICS, Cwele highlighted the fruitful achievements achieved during the 2023 BRICS Summit, which was held in Johannesburg, South Africa. BRICS leaders agreed at the summit to invite six countries, including Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates to join the group.

Cwele noted that more than 20 countries have expressed interest in joining the group as they saw the positive aspects of being a BRICS member, adding that the new members also represent significant economies across the world.

He said discussion about expansion continues as senior officials work to create guidelines that are non-discriminatory, with compelling criteria that cover different characteristics rather than just economic standards.

As 2024 marks the start of a new decade for China’s proposed Belt and Road Initiative (BRI), Cwele highlighted already tangible cooperation in infrastructure, as well as Chinese companies helping South Africa address energy challenges last year , envisaging cooperation being further strengthened in the coming years, aligning the BRI with the African Union’s 50-year continental development plan, Agenda 2063.

China has been instrumental in helping connect African countries, Cwele said, stressing that the construction of infrastructure has helped boost trade between African countries. He emphasized that slanders against China’s cooperation with Africa, such as the “debt trap”, are unfounded, since the debt of most African countries does not come from China, but from other places.

Meanwhile, China-South Africa bilateral exchanges and cooperation have continuously improved. China remains South Africa’s largest trading partner since 2009, while South Africa has been China’s largest African trading partner since 2010. Official data showed that bilateral trade grew from $1 billion in 1998 to 56 billion dollars in 2023.

Article via Global Times.