https://en.sputniknews.africa/20240910/brics-grain-exchange-initiative-national-currency-payments-a-boon-for-african-food-security-1068229497.html
BRICS Grain Exchange Initiative, National Currency Payments: A Boon for African Food Security?
BRICS Grain Exchange Initiative, National Currency Payments: A Boon for African Food Security?
Sputnik Africa
In late 2023, the Russian Union of Grain Exporters proposed to create a BRICS grain exchange to reform global agricultural trade. 10.09.2024, Sputnik Africa
2024-09-10T18:26+0200
2024-09-10T18:26+0200
2024-09-10T18:44+0200
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In an interview with Sputnik Africa, Professor Peter Njiforti, an economics expert at Ahmadu Bello University in Nigeria, highlighted the potential impact of the BRICS Grain Exchange, arguing that it would allow BRICS countries, responsible for a significant share of global grain production and consumption, to have greater influence in setting grain prices, independent of Western-dominated systems.According to the Nigerian expert, the proposed shift to local currency payments between Russia and African nations is also expected to have a significant impact on trade dynamics.Njiforti also emphasized the importance of Russia's investment and research efforts in helping Africa address climate change challenges in the agricultural sector, a key factor in ensuring long-term food security for the continent.
https://en.sputniknews.africa/20240628/russia-to-work-with-brics-countries-on-settlements-in-local-currencies-creation-of-grain-exchange-1067287401.html
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BRICS Grain Exchange Initiative, National Currency Payments: A Boon for African Food Security?
18:26 10.09.2024 (Updated: 18:44 10.09.2024) Muhammad Nooh Osman
Writer/Editor
In late 2023, the Russian Union of Grain Exporters proposed to create a BRICS grain exchange to reform global agricultural trade.
In an interview with
Sputnik Africa,
Professor Peter Njiforti, an economics expert at Ahmadu Bello University in Nigeria, highlighted the potential impact of the BRICS
Grain Exchange, arguing that it would allow BRICS countries, responsible for a significant share of global grain production and consumption, to have greater influence in setting grain prices, independent of Western-dominated systems.
"The BRICS Grain Exchange may weaken the US dollar's dominance in global trade by promoting the use of national currencies," Prof. Njiforti said. "The exchange could facilitate price regulation, benefiting Russia and Brazil that are the major grain exporters in the BRICS alliance."
According to the Nigerian expert, the proposed shift to local currency payments between Russia and African nations is also expected to have a significant impact on trade dynamics.
"By using national currencies, Russia and African countries can reduce their reliance on the US dollars, minimizing exchange rate risks and potential sanctions impact. Secondly, it is going to simplify transactions that is direct currency exchange will streamline transactions, reducing conversion costs, and complexities," he stated, adding that this, in turn, will allow Russian agricultural exporters to expand their market share in Africa and offer more competitive prices to African buyers.
Njiforti also emphasized the importance of Russia's investment and research efforts in helping Africa address climate change challenges in the agricultural sector, a key factor in ensuring long-term food security for the continent.
"Many African countries are actually interested in Russia collaborating with them […] Russia's cooperation with Africa will contribute to the global trends of South-South collaboration for strong economic growth and development," Prof. Njiforti concluded.
