Iranian Official Expresses Optimism about Gold-Backed BRICS Currency
In a recent statement, Rasoul Mousavi, Assistant Foreign Minister and Director General of the South Asia Department at Iran’s Ministry of Foreign Affairs, expressed optimism about the benefits that a gold-backed currency within the BRICS framework could bring to Iran. Mousavi believes that such a currency would weaken the dominance of the U.S. dollar and contribute to increased wealth for Iranians holding gold. He emphasized the significance of the ongoing global economic transformation.
Mousavi's comments were made following a report by Russian news outlet RT, which claimed that Russia had confirmed the creation of a gold-backed common currency within BRICS. The official announcement of this currency is expected to be made during the upcoming leaders summit of the economic bloc, scheduled for August.
The introduction of a gold-backed currency by BRICS, with the support of 41 influential economies, could have far-reaching implications. Mousavi highlighted that this move would not only weaken the dollar and the euro but also specifically benefit countries like Iran. He emphasized that Iranians who possess gold would experience a significant increase in their wealth.
It is important to note that although Mousavi is optimistic about the advantages of a gold-backed BRICS currency for Iran and the potential weakening of the U.S. dollar's dominance, BRICS has not officially announced any plans regarding the creation of such a currency. Leslie Maasdorp, vice president and chief financial officer of the BRICS Bank, recently acknowledged that establishing a BRICS currency as an alternative to the U.S. dollar is a long-term aspiration.
Nevertheless, the notion that a successful implementation of a BRICS currency would diminish the dominance of the U.S. dollar remains prevalent. Additionally, the BRICS economic bloc is actively expanding its influence and considering the addition of new members.
BRICS Summit to Proceed In-Person Despite Putin's Arrest Warrant
President Cyril Ramaphosa of South Africa has confirmed that the upcoming BRICS summit, scheduled for next month, will be held as an in-person event, despite the arrest warrant issued against Russian President Vladimir Putin. Ramaphosa made this announcement during a press briefing on the sidelines of a conference organized by the ruling African National Congress (ANC). He emphasized the importance of physical gatherings, providing an opportunity for face-to-face interactions.
While Ramaphosa did not disclose whether Putin would attend the summit, he addressed concerns regarding the arrest warrant issued by the International Criminal Court (ICC) against the Russian leader. The warrant accuses Putin of unlawfully deporting Ukrainian children. As a member of the ICC, South Africa would be obligated to arrest Putin if he were to set foot in the country.
Ramaphosa's decision to proceed with the BRICS summit as planned highlights the significance of holding a physical gathering. He stressed that it had been almost three years since the last in-person summit and that a virtual format was not a suitable alternative.
There were speculations in the local media that the talks might be relocated to China to avoid the potential dilemma of having to arrest Putin. The arrest warrant poses a challenge for Pretoria, which has maintained a close relationship with the Kremlin since the anti-apartheid era. South Africa has taken a neutral stance on Russia's invasion of Ukraine, opting for dialogue rather than condemnation.
