The BRICS economies were in focus, meeting this week over the course of three days. The group met to consolidate their economic role, and to focus on increasing the scope of the group's competence by including many countries.
The importance of the BRICS economies lies in the fact that it represents 25% of the global GDP, and despite this, the members denied any current intention or plans to issue a currency for the group. However, they are currently focusing on the importance and necessity for trade exchange between them to be done via local national currencies.
The countries of Brazil, India, China and Russia, who are the main members of this bloc, aim to form a competitive economic power similar to the role of the G7 economic countries. These countries seek to overcome the negative repercussions resulting from the escalating events in Russia and Ukraine and the sanctions that negatively affected their economic interests.
They are also seriously considering strengthening the role of the new development bank by expanding its financing sources, with the aim of becoming an alternative to the International Monetary Fund and The World Bank.
Despite the idea of creating a single currency, the BRICS union recognizes the challenges and difficulties of having a competitive currency for the US dollar. The US dollar still remains the leading commercial currency, and leads trading by more than 80% in the foreign exchange market. In addition, the dollar constitutes an important proportion of nearly 60% of the foreign exchange reserves of countries.
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