{"id":16219,"date":"2023-01-07T20:37:07","date_gmt":"2023-01-07T20:37:07","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/sberbank-analysts-editorial-delves-into-the-tremendous-potential-of-a-brics-reserve-currency-fueling-de-dollarization-economics-bitcoin-news\/"},"modified":"2023-01-07T20:37:07","modified_gmt":"2023-01-07T20:37:07","slug":"sberbank-analysts-editorial-delves-into-the-tremendous-potential-of-a-brics-reserve-currency-fueling-de-dollarization-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/sberbank-analysts-editorial-delves-into-the-tremendous-potential-of-a-brics-reserve-currency-fueling-de-dollarization-economics-bitcoin-news\/","title":{"rendered":"Sberbank Analyst’s Editorial Delves Into the ‘Tremendous Potential’ of a BRICS Reserve Currency Fueling De-Dollarization \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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During the last month, Russia\u2019s ruble has dropped 16.48% against the U.S. dollar as energy and commodity prices have slowed over the last few weeks. Russia\u2019s central bank revealed two weeks ago that it is further distancing itself from U.S. dollar dependence by purchasing the Chinese yuan on foreign exchange markets. Roughly around the same time, on Dec. 21, 2022, Sberbank executive and Russian International Affairs Council (RIAC) member, Yaroslav Lissovolik, published an opinion article that talks about exploring the pathway toward a new BRICS reserve currency.<\/strong><\/p>\n

Russia\u2019s Central Bank Seeks to Reduce Dependency on US Dollar with Purchase of Chinese Yuan<\/h2>\n

At the end of July, Bitcoin.com News reported<\/a> on the BRICS nations\u2019 plan to craft a new reserve currency after Russian president Vladimir Putin announced<\/a> the plan amid the BRICS Summit in June. While the subject was topical at the time, people stopped discussing the BRICS reserve currency for a while. A few months later, in October 2022, the author of the best-selling book Rich Dad Poor Dad, Robert Kiyosaki, discussed<\/a> the subject and noted that the U.S. dollar is \u201ctoast.\u201d Over the last 30 days, energy prices and commodities have subsided in value, but some economists expect a $200-per-barrel run-up<\/a> in oil prices at some point in 2023.<\/p>\n

\"Sberbank
BRICS stands for the association comprising Brazil, Russia, India, China, and South Africa. A paper published in the International Journal of Innovation and Economic Development, titled \u201cThe BRICS nations and their priorities,\u201d states that the five nations have a combined nominal GDP of $16.039 trillion.<\/figcaption><\/figure>\n

While energy and commodity values have dropped, Russia\u2019s ruble has dropped against the greenback as well. Statistics show that the ruble has lost 16.48% against the U.S. dollar in 30 days, but five-day metrics show the ruble is up 1.72%. Year-to-date statistics show the Russian currency has increased 5.37%<\/a> over the last 12 months. Meanwhile, at the end of December 2022, Reuters reported<\/a> that Russia will be making Chinese yuan purchases on the currency market in 2023. Reporter Elena Fabrichnaya said Moscow\u2019s move was cited by two sources and it opens a \u201cnew front in an accelerating de-dollarization drive designed to reduce its dependency on Western finance.\u201d<\/p>\n

Sberbank Analyst Discusses Possibility of a BRICS Reserve Currency Complementing National Currencies<\/h2>\n

The previous day, on Dec. 21, 2022, Yaroslav Lissovolik, a member of the Russian International Affairs Council (RIAC) and head of the analytical department at Sberbank, published a blog post<\/a> titled \u201cExploring the Pathways,\u201d discussing the proposed BRICS reserve currency. Lissovolik said the \u201cBRICS reserve currency has taken on particular significance in recent months\u201d following Russian president Putin\u2019s remarks at the BRICS Summit. The analyst detailed that there\u2019s also been recent legislation and debates concerning the \u201cexpediency of creating a new reserve currency.\u201d<\/p>\n

Lissovolik cited the most recent discussion<\/a> about the BRICS reserve currency at the Eighth BRICS Parliamentary Forum. At the event, Federation Assembly Speaker Valentina Matvienko suggested that BRICS legislators start to move forward on concrete measures that bolster the countries\u2019 economies. Matvienko singled out specific initiatives, including the new international reserve currency and developing better settlement procedures within the BRICS nations. Lissovolik\u2019s blog post also compared the new BRICS reserve currency idea to the 2018 Valdai Club concept of the R5 currency<\/a>, a name that signifies the letter \u201cR\u201d for the five currencies: the real, ruble, rupee, renminbi, and rand.<\/p>\n

Lissovolik detailed that a new BRICS reserve currency won\u2019t be created to replace the national reserve currencies used by each of the nations, but rather to \u201ccomplement these national currencies.\u201d The Sberbank analyst said a brand new reserve currency could have a \u201ctransformational effect on the international financial system,\u201d as he believes there\u2019s a \u201cnotable shortage of reserve currencies\u201d in the global economy.<\/p>\n

\u201cImportantly, the scope for employing the new reserve currency in the world economy is sizeable given the tremendous potential for de-dollarization,\u201d Lissovolik\u2019s blog post concludes. \u201cThe new BRICS reserve currency can act in concert with the stronger role performed by BRICS national currencies to take on a greater share of the total pie of currency transactions in the world economy.\u201d<\/p>\n

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\nTags in this story
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brics<\/a>, BRICS national currencies<\/a>, Chinese Yuan<\/a>, commodity<\/a>, currency market<\/a>, de-dollarization<\/a>, economics<\/a>, Elena Fabrichnaya<\/a>, Energy<\/a>, Federation Assembly<\/a>, international financial system<\/a>, Legislation<\/a>, national currencies<\/a>, OIL<\/a>, parliamentary forum<\/a>, R5 currency<\/a>, Rand<\/a>, real<\/a>, renminbi<\/a>, reserve currencies<\/a>, reserve currency<\/a>, ruble<\/a>, rupee<\/a>, Russia<\/a>, Russian International Affairs Council<\/a>, Sberbank<\/a>, Settlement<\/a>, summit<\/a>, US Dollar<\/a>, Valentina Matvienko<\/a>, Vladimir Putin<\/a>, Yaroslav Lissovolik<\/a><\/div>\n<\/div>\n

What do you think about the Sberbank analyst\u2019s editorial about a new BRICS reserve currency? Share your thoughts about a potential new BRICS reserve currency in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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