Ex-Russian PM claims BRICS unprepared for unified currency

Sergey Stepashin, the former Prime Minister of Russia, expressed scepticism about the feasibility of a common BRICS currency, labeling the idea as premature.

Stepashin suggested that the focus should be on increasing the use of national currencies for transactions among BRICS countries rather than rushing into creating a unified currency.

He emphasised the challenges of establishing a common currency, especially between major economies like India and China, which he described as "too large" to share a single currency.

Stepashin stated: “It is difficult to imagine that India and China have a common currency. These are too large countries, large economies.”

He recommended that the first step should be enhancing the use of national currencies for payments and ensuring the smooth operation of financial institutions like the Eurasian Bank and the BRICS Bank.

Stepashin's stance is that strengthening financial cooperation through national currencies will lay the groundwork for any future discussions on a unified BRICS currency.

The BRICS economic bloc, consisting of Brazil, Russia, India, China, South Africa, and recent additions like Iran, Egypt, Ethiopia, and the UAE, is still in the early stages of such cooperation.

While Stepashin advocates caution, other BRICS members, particularly Iran, have been pushing for the creation of a single BRICS currency and greater use of national currencies in international transactions.

Iran has reportedly supported Russia in developing a common currency for the BRICS bloc, aligning with Russia and China’s ongoing efforts to promote local currencies within the group.

Recent discussions between Chinese Premier Li Qiang and Russian Prime Minister Mikhail Mishustin have also highlighted the importance of enhancing cooperation in finance and currency within BRICS.

The divergent views within BRICS highlight the complexities of pursuing a unified currency, with some members advocating for stronger financial integration, while others, like Stepashin, urge a more cautious approach.

As BRICS continues to evolve, the balance between national interests and collective economic strategies will be critical in shaping the future of the bloc’s financial architecture.