The 2024 edition of the St Petersburg International Economic Forum (SPIEF) takes place from June 5 to 8. The theme of this year's event is “The foundation of a multipolar world - forming new points of growth”.

Trade in National Currencies is Key Step To Gain Critical Mass in Intra-BRICS Trade, Official Says

17:42, 6 June 2024

Rasina Musallimova

Writer

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This year, as Russia takes over the chairmanship of the expanded BRICS group, with Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates as the five new members, the expansion of international trade in local currencies is one of the group's key agenda items.

Sputnik

Trade in national currencies is "a very important step towards gaining critical mass in the field of intra-BRICS trade," South Africa's sous-Sherpa to BRICS, Ben Joubert, told Sputnik Africa on the sidelines of the St. Petersburg International Economic Forum 2024.

"This is no knee-jerk reaction to anything else that might be happening in the world. It's quite a logical one. BRICS member states have currencies, that are floatable on the world's financial markets. So we have good currencies and we need to trade in those," he said.

Trade in national currencies also allows for saving money on transaction cost, which is important given that BRICS members are emerging and developing countries that do not "have money to spend on non-core business."

"Intra-BRICS trade is growing. It's growing at a faster pace than the trade that we have with the rest of the world. Between 2006 and 2022, we have gone up from $90 billion in intra-BRICS trade per annum to $440 billion," he noted.

Speaking about intra-African trade in national currencies, the sous-Sherpa stressed that, according to some studies, it could save $5 million per annum, which "can go into other social and socioeconomic projects."

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The official also highlighted that "not only full members but also partner countries will grow in BRICS," which became the "voice for the Global South."

"This year there's quite a lot of attention being given to the idea of a partner model, a partner country model," Ben Joubert told Sputnik Africa, adding: "[BRICS] is trying to be true to the original idea of being a promoter of the values of the Global South."

Given that BRICS became economically bigger than the G7 in 2023, changes must happen, and BRICS is "a good voice to push for those changes," the sou-Sherpa said.

He noted that BRICS is not "creating an alternative system to the world's systems;" it seeks to ensure that the entire globe, everyone, is truly represented in the system.

Joubert also highlighted that, judging from BRICS-Africa relations, it is evident that the bloc realizes "how important Africa is and, in the longer run, how important Africa's progress and development would be for the whole world."

Speaking about the upcoming BRICS summit in the Russian city of Kazan, the sous-sherpa said the agenda of the event is likely to include these issues:

progress on the issue of local currencies and payment platforms;

the idea of a partner country model;

the issue of how the UN or the world system should be reformed.

SPIEF 2024 is held on June 5-8 in Russia's cultural capital, Saint Petersburg. The event united about 170,000 participants from around 130 countries.

The Russian city of Kazan will host the 2024 BRICS summit from October 22-24.