While the ruble is falling in Russia, the Kremlin has come up with a "currency to replace the dollar": trying to draw in "partners"

Russia announced plans to create a single currency of BRICS (an economic organization that includes Brazil, Russia, India, China and South Africa). We are talking about a currency based on the example of the euro, which is supposedly able to replace the dollar.

According to the publication, the Russian embassy in Kenya said, "the BRICS countries are planning to introduce a new trade currency that will be backed by gold." However, earlier this week, the New Development Bank, a financial institution created by the BRICS bloc, said in an official statement that it has no immediate plans for a single currency.

Instead, the BRICS members - Brazil, Russia, India, China and South Africa - are pushing to expand bilateral trade in local currencies. They are not ready to challenge the dollar's global dominance.

"Developing something alternative is more of a medium- to long-term ambition," Leslie Maasdorp, vice president and chief financial officer of the New Development Bank, told Bloomberg. "There is no proposal right now to create a BRICS currency."

Ahead of the virtual BRICS summit, Indian Foreign Minister Dr. S. Jaishankar said "there is no idea of a BRICS currency." "Currencies will remain a national issue for a long time to come," Jaishankar added.

The bloc, which was formed in 2009, seeks to gain more influence around the world as a way to counterbalance the dominance of the U.S. and its traditional allies in multilateral financial institutions such as the World Bank and the International Monetary Fund.

Against this backdrop in Russia, the ruble fell to its lowest since March 2022. The dollar exchange rate amounted to 91.05 rubles, while the euro has already reached 100 rubles. The fall of the Russian currency accelerated after the "mutiny" of the PMC "Wagner" Yevgeny Prigozhin, which once again showed the weakness of the Kremlin.

Earlier OBOZREVATEL wrote that Hong Kong, Kazakhstan and Armenia are selling microchips to Russia, which fell under sanctions. Recently, Russian companies have been changing the code of goods so that banks can conduct problematic transactions without problems.

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