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BRICS new currency to shield against sanctions
05 Jun 2023 at 01:39hrs | Views
The Brics are looking to "ensure that we do not become victims to sanctions that have secondary effects on countries that have no involvement in issues that have led to those unilateral sanctions," Naledi Pandor, South Africa's minister of international relations, told reporters after the meeting.
Brics nations asked the bloc's specially created bank to provide guidance on how a potential new shared currency might work, including how it could shield other member countries from the impact of sanctions such as those imposed on Russia.
The foreign ministers of Brazil, Russia, India, China and South Africa convened in Cape Town earlier Thursday to discuss how the bloc can win greater global influence and to challenge the US. While they didn't reach firm conclusions, the use of alternative currencies was among the prominent talking points.
The Brics are looking to "ensure that we do not become victims to sanctions that have secondary effects on countries that have no involvement in issues that have led to those unilateral sanctions," Naledi Pandor, South Africa's minister of international relations, told reporters after the meeting.
While she didn't mention Russia directly, the country has been hit by widespread sanctions from Western powers over President Vladimir Putin's invasion of Ukraine.
Proposals are being considered by officials at the New Development Bank, the Shanghai-based lender created by Brics nations, and the bloc "will be guided to them as to what the future models might be," Pandor said, without providing further details.
Expansion plans
The Brics ministers were joined by counterparts from countries including Saudi Arabia, the United Arab Emirates, Egypt and Kazakhstan. Also on the agenda was expansion, with more than 20 countries aspiring to join.
Asked about a meeting held with a Saudi Arabian delegation, Russian Foreign Minister Sergey Lavrov said only that the issue of the kingdom joining was discussed, amid broader talks about how the bloc should expand its membership.
"With regard to the issue of Brics, it is still being shaped, it is still evolving," he said.
Brics nations asked the bloc's specially created bank to provide guidance on how a potential new shared currency might work, including how it could shield other member countries from the impact of sanctions such as those imposed on Russia.
The foreign ministers of Brazil, Russia, India, China and South Africa convened in Cape Town earlier Thursday to discuss how the bloc can win greater global influence and to challenge the US. While they didn't reach firm conclusions, the use of alternative currencies was among the prominent talking points.
The Brics are looking to "ensure that we do not become victims to sanctions that have secondary effects on countries that have no involvement in issues that have led to those unilateral sanctions," Naledi Pandor, South Africa's minister of international relations, told reporters after the meeting.
While she didn't mention Russia directly, the country has been hit by widespread sanctions from Western powers over President Vladimir Putin's invasion of Ukraine.
Proposals are being considered by officials at the New Development Bank, the Shanghai-based lender created by Brics nations, and the bloc "will be guided to them as to what the future models might be," Pandor said, without providing further details.
Expansion plans
The Brics ministers were joined by counterparts from countries including Saudi Arabia, the United Arab Emirates, Egypt and Kazakhstan. Also on the agenda was expansion, with more than 20 countries aspiring to join.
Asked about a meeting held with a Saudi Arabian delegation, Russian Foreign Minister Sergey Lavrov said only that the issue of the kingdom joining was discussed, amid broader talks about how the bloc should expand its membership.
"With regard to the issue of Brics, it is still being shaped, it is still evolving," he said.
Source - Bloomberg
