Economist Shulgin admitted that the dollar will replace the international reserve currency of the BRICS countries

MOSCOW, 11 Aug – An international reserve currency based on the BRICS currency basket is under development. But it is already possible to assume how the currency of this economic union will be created, told to Prime agency Mikhail Shulgin, head of the global research department at Otkritie Investments.

It is important for Russia and other BRICS members to reduce dependence on the US dollar, primarily in mutual trade and external debt servicing. “Our new economic reality is to live under severe sanctions. The main trend of the Russian currency market will be the declining role of the US dollar and the euro, with the growing role of the currencies of friendly countries and the ruble,” he said.

According to him, the new currency would help to avoid the risks that certain currencies of the BRICS countries are exposed to and protect them from the risks of settlements in dollars and euros. Its issuer could be the New Development Bank. It should be correlated with the rates of individual currencies included in it, while the role of each participant in the basket should be significant.

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