Finance minister Enoch Godongwana has responded to speculation that the BRICS countries are moving towards establishing their own currency.
Suggestions that the BRICS group of emerging market powers establish their own currency to reduce their reliance on the dollar aren’t under serious consideration and never have been, South Africa’s finance minister said.
“Setting up a common currency presupposes setting up a central bank, and that presupposes losing independence on monetary policies, and I don’t think any country is ready for that.” By way of example, when South Africa trades with neighbouring Botswana, which isn’t a BRICS member, “We know the rate of exchange between the two currencies, “ Godongwana said. “There is no reason why we can’t pay them in pula, and they pay us in rands.”
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.
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