Former Goldman Sachs economist Jim O’Neill, known for coining the term “BRIC” in 2001, has made a significant prediction regarding the currency used by BRICS countries. He anticipates the possibility of these nations adopting a shared currency within the next five years.
Neill suggests that the increasing economic interconnectedness among BRICS countries, which include Brazil, Russia, India, China, and South Africa, might necessitate a unified currency to streamline trade and investment. O’Neill also highlights their potential desire to reduce dependence on the US dollar due to its perceived instability.
BRICS countries have been engaged in discussions about the concept of a common currency, and recent months have seen some progress. an agreement was reached among BRICS nations to establish a task force aimed at assessing the viability of a shared currency, BRICS countries are taking concrete steps toward investigating a shared currency indicates their serious consideration of the idea. Should they successfully navigate the challenges associated with establishing a common currency, it would mark a significant development within the global financial landscape.
Jim O Neill : Currency Guru
O Neill has been called a “Currency Guru” he coined the term BRIC, “The World needs better Economics BRICS”,a paper written for Goldman Sachs’s Global Economic paper Series, on the four emerging “BRIC” Economic Brazil,Russia,India and China. Using the same Currency among BRICS countries could help them trade more easily, which might make their economies grow. It would also mean they don’t have to rely as much on the US dollar, giving them more power over their own economies.
BRICS Formation :
BRICS was originally known as “BRIC” when it was founded in 2006 by four countries: Brazil, Russia, India, and China.
After a series of high level meetings, The first BRIC Summit was held in Yekaterinburg, Russia on 16 June 2009.
BRIC group was renamed as BRICS (Brazil,Russia,India,China and South Africa) after South Africa was accepted as full member at the BRIC Foreign Ministers meeting in New York in September 2010, and since then, it has been referred to as “BRICS.”
Jim O Neill Suggestion : If India and China are friends
Russian Times : China and India playing into west’s hand
If India and China collaborate, the BRICS nations’ currency might rival the Dollar. The combined GDP of Brazil, Russia, India, China, and South Africa surpasses $25 trillion, exceeding the eurozone’s GDP. Should these countries opt for a common currency, it could significantly challenge the dominance of the dollar.
The BRICS currency could have a significant impact on the global financial system. It could reduce the dominance of the dollar and promote trade and investment between the BRICS countries, such a move could contribute to stabilizing the Global economy.
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