Suggestions that the BRICS group of emerging market powers establish their own currency to reduce their reliance on the dollar aren\u2019t under serious consideration and never have been, South Africa\u2019s finance minister said.<\/p>\n\n\n\n
\u201cNo one has tabled the issue of a BRICS currency, not even in informal meetings,\u201d Enoch Godongwana said in an interview on the sidelines of the bloc\u2019s annual summit in Johannesburg on Thursday. <\/p>\n\n\n\n
\u201cSetting up a common currency presupposes setting up a central bank, and that presupposes losing independence on monetary policies, and I don\u2019t think any country is ready for that.\u201d<\/p>\n\n\n\n
The bloc, which also includes Brazil, Russia, India and China, is evaluating other ways to reduce their reliance on the greenback, including trading directly in their own units and ensuring that the New Development Bank, which they established in 2015, adapts how it raises its funding.<\/p>\n\n\n\n
By way of example, when South Africa trades with neighbouring Botswana, which isn\u2019t a BRICS member, \u201cWe know the rate of exchange between the two currencies, \u201c Godongwana said. \u201cThere is no reason why we can\u2019t pay them in pula, and they pay us in rands.\u201d<\/p>\n\n\n\n
The finance minister welcomed a decision by BRICS to extend membership invitations to six more countries because it would give South Africa better access to bigger markets and deepen trade relations between the Global South.<\/p>\n\n\n\n
Leaders from Brazil, Russia, India, China and South Africa agreed to expand their BRICS group at a summit being held this week in Johannesburg, South African President Cyril Ramaphosa said. It will be the first expansion since 2010.<\/p>\n\n\n\n
\u201cWe have consensus on the first phase of this expansion process, and other phases will follow,\u201d Ramaphosa said.<\/p>\n\n\n\n
The BRICS nations invited top oil exporters Saudi Arabia, Iran, Egypt, Argentina, Ethiopia and the United Arab Emirates to join their bloc in a push to expand its global influence, effective 1 January 2024.<\/p>\n\n\n\n
The push for expansion was largely driven by China but had the backing of Russia and South Africa. India was concerned a bigger BRICS would transform the group into a mouthpiece for China, while Brazil was worried about alienating the West.<\/p>\n\n\n\n
More than 20 nations from the Global South had formally requested to join ahead of the summit.<\/p>\n\n\n\n