President Putin outlined that Brazil, Russia, India, China, and South Africa (BRICS) are developing a new reserve currency that is basket-based. The presumption is that it will comprise real, roubles, rupees, renminbi, and rand and present an alternative to the IMF’s Special Drawing Right (SDR).
The BRICS basket currency is set to rival the US-dominated International Monetary Fund alternative. It will also allow Russia to widen its influence as dollar’s dominance continues to erode. Central banks are already diversifying into the Chinese yuan and other smaller currencies.
Sputnik/Alexey Nikolsky/Kremlin via Reuters
