Single Brics currency top of agenda as summit starts

A single currency and common payment system to facilitate international trade dominated the discussions at the Brics Business Forum on the first day of the 15th Brics Summit in Johannesburg yesterday.

The leaders who attended the forum’s plenary yesterday listened to feedback on the Brics Business Forum deliberations regarding cooperation by business communities of the five Brics countries, presented by Standard Bank group chief executive Sim Tshabalala.

Following that, each of the leaders present addressed the Brics Business Forum, where business from the five countries deliberated a number of issues including trade, a single currency and cooperation.

Finance Minister Enoch Godongwana was quoted on Jacaranda FM as saying “it is too early for South Africa to enter that discourse because our trade as it stands is skewed in favour of the West.

“Seventy-five percent of our foreign liabilities are in Europe and North America, so now to say we as South Africa can do that is premature. It doesn’t mean we can’t participate in other payment systems. There are some discussions within central bank streams. The current debate is how do we finance projects in each of the Brics member states in their own currencies.”

Russian President Vladimir Putin gave a virtual address to the business forum yesterday.

He gave details of how the Brics cooperation had impacted positively on the Russian economy and those of other members states.

He also briefly talked about how the “unlawful” sanction imposed by the West had affected Russia’s economy and its resilience despite that.

Presidents Luiz Inacio Lula da Silva of Brazil and South Africa’s Cyril Ramaphosa, Indian Prime Minister Narendra Modi and a representative of China’s President Xi Jinping made opening remarks at the summit.

Putin was physically represented at the gathering by Foreign Minister Sergey Lavrov.

Many saw the presence of China-based New Development Bank (NDB) head Dilma Rousseff at the summit as indicating that a single currency would be adopted. Rousseff joined the heads of state.

This week, former Nigerian president Olusegun Obasanjo strongly supported a single currency for Brics.

The gathering was attended by Cabinet ministers, deputy ministers, ANC national executive committee members, representatives from China, Brazil, Russia, India and countries hoping to join Brics in future.

There was general consensus around a single currency for the bloc and that it was possible to implement it within the bloc.

Currently, the NDB allows countries to use their own currencies to trade. At least 23 countries were confirmed to have applied to join Brics.

Brics Business Forum chair Stravros Nicolaou said Brics’ global gross domestic product at 32% had overtaken that of the G7, which was at 31%.

According to Minister of International Relations and Cooperation Naledi Pandor, together Brics constitutes 42% of the world’s population, almost 30% of its territory and 20% of international trade.

With its potential for expansion, the bloc was set to have huge influence across the developing world.

This week, Ramaphosa said “Brics countries could collectively shape global dynamics” and “potentially drive significant changes in the world economy and international relations”.

The highlights of the summit are addresses by the UN secretary-general Antonio Guterres and heads of state today.

Ramaphosa will then lead a Leaders’ Retreat and a dialogue to be attended by the four presidents, Lavrov on Putin’s behalf, and leaders from the global south.