BRICS Currency: The discussion of BRICS nations having their own currency came to the fore when in August 2023, at the BRICS conference held in Johannesburg, South Africa, Brazilian President Luiz Inacio Lula da Silva proposed to create a common currency for trade and investment among the BRICS countries. However, then the member countries themselves did not give much preference to this idea because there are many challenges in its way. There are many disparities among the BRICS countries in economic, political and geographical terms. 

The BRICS summit is going to be held in Kazan, Russia from 22 to 24 October 2024. Before the summit, Russian President Vladimir Putin said on BRICS' own currency, the time has not come yet. However, he said, this organization of a group of 10 countries is exploring the possibilities of using digital currency for mutual trade and investment. He said that Russia is constantly talking to other countries including India on this. 

45 percent of the world's population lives in the member countries of BRICS and they have a 28 percent share in the global economy. Obviously, the group of BRICS countries has a big influence in the world. Due to this influence, there has been a demand for the BRICS countries to have their own currency so that the influence of the dollar can be challenged. BRICS has the capability to challenge the dominance of the US dollar by creating its own currency. However, it is not so easy for any currency to replace the dollar.  

Experts from many countries have been saying that apart from the US currency dollar, one more currency should be given the status of reserve currency so that the dominance of the US dollar can be challenged. There are discussions all over the world about de-dollarization. Reducing dependence on the US dollar as a reserve currency is called de-dollarization. From crude oil to other commodities, central banks buy dollars to fill their foreign exchange reserves and the dollar is also used for bilateral trade. In 1920, the dollar replaced the pound sterling as the reserve currency. Global tensions, trade wars, economic sanctions are the major reasons due to which there are discussions about de-dollarization in the world but no result has come out yet. 

At the BRICS summit in 2023, the President of Brazil had said that countries that do not use the US dollar should not be forced to use the dollar for trade. He had said that having their own currency for BRICS countries would increase payment options and would also help in reducing currency fluctuations. 

If the BRICS countries create their own currency, it can give a big blow to the dominance of the US dollar. Many countries believe that a big challenge can be given to the US and its powerful currency dollar only when the economic power of the US is hit. 60 percent of the foreign currency reserves kept in the central banks of the world are present in the form of dollars.