Moscow: Russian President Vladimir Putin has made a big statement about the possibilities of trade in a common currency by its member countries before the BRICS summit. He said that the time has not yet come for a common currency of BRICS. However, he said that this group of 10 countries is exploring the possibility of using digital currencies in mutual trade and investment and for this his country is working in this direction together with India and other countries. He advocated a cautious approach in creating a new reserve currency due to the difference in the structure and structure of the economies of the BRICS member countries.

Putin said these countries should focus on the use of national currencies, new financial instruments and the creation of a system similar to SWIFT. "At the moment it (BRICS currency) is a long-term possibility. It is not being considered. BRICS will be cautious and work gradually, moving forward slowly," Putin told senior editors of BRICS member countries while speaking to the media at his official residence in Novo-Ogaryovo, about 50 km from Moscow on Friday.

The time has not come yet.'' The Russian president made the remarks in response to a question about the BRICS plan to create a reserve currency. The BRICS grouping is believed to have been conceived in response to the geopolitical and geo-economic assertiveness of the West.

16th BRICS summit is going to be held in Russia

Let us tell you that this statement of Putin has come before the 16th annual BRICS summit to be held in Kazan city of Tatarstan in Russia next week. Moscow is hosting it. Prime Minister Narendra Modi will participate in this summit to be held from 22 to 23 October. This will be the first summit of the group after the inclusion of Egypt, Ethiopia, Iran, Saudi Arabia and United Arab Emirates (UAE). Brazil, Russia, India, China and South Africa are the original member countries of BRICS. Putin, in response to a question, said that BRICS is now exploring the possibility of increasing the use of national currencies and creating such instruments that can make such actions secure.

BRICS is considering these possibilities

Putin said the BRICS countries, in particular, are looking into the possibility of using electronic tools. "We are looking into the possibility of expanding the use of national currencies and settlement systems, and deploying tools that would make it sufficiently secure," he said. Putin said the group would have to prepare a "toolkit" that would be under the supervision of relevant BRICS institutions. "This could be another very good step in the development of the global South with our direct active participation," he added.

We will talk about this during the (Kazan) summit. We are already consulting with Chinese, Indian friends and people from Brazil. Apart from this, we have also had a round of discussions with South Africa.

Emphasis on reducing dependence on the US dollar

The Russian President also stressed the need to establish links between central banks and exchange financial information. Putin also referred to the group's broader strategy to reduce dependence on the US dollar and assert more economic independence. He said, "I think America needs to consider that they have spoiled relations with Russia by constantly imposing sanctions and this ultimately has a negative impact on them. So the whole world is wondering whether it is appropriate to use the dollar." Putin claimed, "Now the amount of dollars is decreasing both in settlement and reserves. Even America's traditional allies are reducing their dollar reserves."