why is the idea of ​​a single currency between Russia, China and Brazil becoming more concrete?

Objective: to strengthen economic cooperation and weigh more heavily against the dollar. Brazilian President Lula begins Tuesday, April 11 a four-day visit to China. It will of course be a question of the Ukraine war, but also of economic exchanges between the two member countries of the Brics. This group of so-called “emerging” countries which brings together Brazil and China, but also India, Russia and South Africa, was created in 2006, under the first term of the former trade unionist.

>> In Brazil, Lula will reach his 100th day in power with a mixed record

Together, these countries are trying to unite to be more competitive against the G7 by signing cooperation agreements, alliances… and also setting up a common economic structure. The Brics have in a way two statues to unbolt: the dollar as the reference currency for international trade and the IMF, an institution considered by these countries as a symbol of Western domination.

Before his meeting with Xi Jinping scheduled for Friday, April 14 in Beijing, Lula is expected in Shanghai to attend the enthronement of the former left-wing president of Brazil Dilma Rousseff (2011-2016) at the head of the Brics bank, exactly.

Putin insists

Beyond the economic aspect, it will be a question of a project, left in the making for a few years: the creation of a common currency. A goal regularly put on the table by Vladimir Putin, the Russian president.

“We understand whyi, analysis Sylvie Matelly, economist and deputy director ofInstitute of international and strategic relations (Iris). While Vladimir Putin is sanctioned by the bulk of Western countries, a pretty huge chunk of the global economy, he wants to tighten ties with his partners. Starting with the Brics, to create an alternative payment instrument to the dollar since it is sanctioned and has difficulty sourcing around the dollar.”

But some obstacles still stand before the creation of such a common currency. In particular thea creation of a central bank and harmonized rules for this common market. While waiting for the realization of this project, the power of the Brics is there. For the past few days, the total GDP of the Brics has exceeded that of all the G7 countries. And recent maneuvers show that they intend to take advantage of their economic moment to gain diplomatic weight…