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BRICs members face obstacles on road to de-dollarisation
The 14th summit of Brics countries – Brazil, Russia, India, China and South Africa – has made clear that the possible creation of a common currency is still an illusion for now. A common currency would in theory enable Brics countries to move from bilateral to multilateral clearing in trade settlement and reduce their dependence on the dollar. A declaration released at the gathering in Johannesburg on 24 August made no mention of a common currency and instead focused on bilateral clearing – the second-best option. It stressed the importance of ‘encouraging the use of local currencies in international trade ... (full story)