Naledi Pandor, South Africa’s Minister of International Relations, told reporters that the new currency created by BRICS nations may offer a shield from sanctions.
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BRICS nations asked the bloc’s specially created bank to provide guidance on a how a potential new shared currency might work, including how it could shield other member countries from the impact of sanctions such as those imposed on Russia.
The foreign ministers of Brazil, Russia, India, China and South Africa convened in Cape Town earlier Thursday to discuss how the bloc can win greater global influence and to challenge the US. While they didn’t reach firm conclusions, the use of alternative currencies was among the prominent talking points.
The BRICS are looking to “ensure that we do not become victims to sanctions that have secondary effects on countries that have no involvement in issues that have led to those unilateral sanctions,” Naledi Pandor, South Africa’s minister of international relations, told reporters after the meeting.
While she didn’t mention Russia directly, the country has been hit by widespread sanctions from Western powers over President Vladimir Putin’s invasion of Ukraine.
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Proposals are being considered by officials at the New Development Bank, the Shanghai-based lender created by BRICS nations, and the bloc “will be guided to them as to what the future models might be,” Pandor said, without providing further details.
The Reserve Bank of Zimbabwe introduced a gold-backed digital currency that will be fully backed by physical gold held by the Bank. This move might pave the way for gold-backed money.