3 ms·
> I'm curious how you'd start this new currency, if not backed by gold? BRICS don't want to depend on USD, and gold is commonly the denominator everyone can agr
by red-iron-pine 3y ago
> I'm curious how you'd start this new currency, if not backed by gold? BRICS don't want to depend on USD, and gold is commonly the denominator everyone can agree on.
Find a country and a currency that appears to be the most stable.
In the BRICS that's really only China, or maybe India. Brazil is something of a basket case at times, India is catching up fast but has its own challenges, Russia is actively collapsing itself in Ukraine, and S. Africa is a borderline failed state.
China is the only country of the group I'd truly call stable, and the other BRICS pegging a currency to the Yuan is about the only other option besides gold, or pegging to the Euro / USD / Yen.
Never gonna happen either, since India has a direct, albeit low-key-ish rivalry with China, and Russia has no reason to play ball when their weaker currency translates to better resource exports.