Speaking to TV BRICS, Glazyev called the monetary situation in the world “irrational.” Subsequently, he referenced interest in “deep reforming of the international financial system” as a propelling factor for a currency’s development. He discussed the growing absence of the US dollar and how that could also factor in.
The continued decrease in the dollar’s usage in international economics has informed the need for a different unit of account for global settlements.
Therefore, the prospect of a single currency may not be as far-fetched as some have assumed.
Amid the BRICS growth and rise in relevance, the alliance has discussed the idea of a singular currency. Indeed, the prospect has been raised with a bevy of ideas on how to support it. Whether it be a digital asset or pegged to gold, the discussions have been ongoing.
“Today we can already say that in the next 30-40 years the main burden in the growth of the world gross product will be played by Southeast Asian nations,” Glazyev said.
These are, first of all, China, India, the ASEAN countries, currencies which today are practically not represented in the world monetary and financial system as world reserve currencies, he said.
In trade within the Eurasian Economic Union, we have almost completely switched to national currencies. If we talk about trade with Russia, then nearly 100% of these currencies are replaced by the ruble, the professor said.
He added that “in trade with China, we have already replaced half of the Western currencies with national currencies: the ruble and the yuan. Across the spectrum of our partners, we see the rapid displacement of the dollar and the euro from international payments.”
After Russia, we see the same trend in other BRICS member states. In particular, China is actively expanding the use of yuan in international trade and in the China Belt and Road Initiative area, the yuan is gradually becoming the dominant currency.
India has announced that it will switch to paying for imports in rupees. We are also aware of statements by the presidents of Brazil and South Africa on the desirability of introducing a new global currency. In other words, we are now in the first stage of this process.
Regarding difficulties in rolling out the BRICS single currency, Glazyev stressed that only political will is needed, because technically this currency is almost ready, the software and mathematical tools have been created.