The upcoming BRICS summit in Kazan, Russia, is closely monitored for potential developments in economic cooperation and currency strategies. With the introduction of new members and the ongoing development of a BRICS currency, this gathering could mark a significant turning point in international finance. Will the summit unveil a new era of economic cooperation and bring about a new currency? Global broker Octa provides the analytics.

• The BRICS organisation has evolved from a discussion forum to a more active player in global affairs.
• The creation of a common BRICS currency is a major focus of the upcoming summit in Kazan.
• Implementing a new BRICS currency presents significant challenges but also offers potential benefits for the member states.
• The success of a BRICS currency could have a profound impact on the international financial system, potentially challenging the dominance of the U.S. dollar.
• Gold is likely to play a role in the new currency development, as evidenced by increased gold purchases by BRICS central banks.
• While the full implications of a BRICS currency are uncertain, its development could mark a significant shift in the global economic landscape.

KUALA LUMPUR, MALAYSIA - Media OutReach Newswire - 18 October 2024 - BRICS countries are due to meet for their 16^th annual summit in Kazan, Russia, on 22-24 October. BRICS, a fast-growing intergovernmental organisation currently consisting of nine member states (Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Aran Emirates), has been holding regular summits since 2009. However, many past gatherings have been relatively low-key, as BRICS was considered primarily as a platform for discussion and viewed mainly as a forum for dialogue. Still, there have been notable exceptions, and the organisation has been getting increasingly more vocal lately.

• In 2009, following the 1^st Summit in Yekaterinburg, Russia, the BRIC group (South Africa was not part of the organisation then) declared the need for a new world reserve currency. Although the official statement did not include any explicit intentions or an action-plan, it was the first time the U.S. dollar dominance was challenged on such a high level.
• In 2014, at its 6^th Summit held in Fortaleza, Brazil, BRICS adopted the so-called Fortaleza Declaration and Action Plan. It laid out the organisation's plans for the future and focused on political dialogue, economic cooperation and integration, and cultural exchange.
• The 14^th Summit, presided by China in 2022 and hosted virtually, aimed to strengthen cooperation among the five member states. It was at this summit that Russia's president announced that the organisation was working to design a new reserve currency based on a basket of BRICS currencies.
• The 15^th Summit, which took place in Johannesburg, South Africa, in 2023 was particularly notable as five new countries were invited to join the organisation (Argentina, Egypt, Ethiopia, Saudi Arabia, and United Arab Emirates). Although Argentina later declined to accept the invitation, other countries officially became members of BRICS on December 29, 2023 with Saudi Arabia joining later.

‘It is quite clear that BRICS summits are getting progressively noteworthy, and the organisation can no longer be dismissed as a mere talking shop. This year, the BRICS meeting may prove to be yet another turning point, especially for international finance,’ says Kar Yong Ang, a financial market analyst at Octa Broker. Indeed, the summit in Kazan might potentially produce substantial and meaningful developments with significant and far-reaching implications. Specifically, the creation of a common BRICS currency is expected to be included in the agenda. ‘It [BRICS common currency] is arguably the most ambitious project in international finance since the introduction of euro in 1999,’ says Kar Yong Ang, noting that while rumors about the BRICS currency have been circulating for years, they are now more likely than ever to become reality in the near future. Still, Octa Broker does not expect a new currency to be fully unveiled during the summit in Kazan but anticipates substantial advancements in its conceptualisation and development. Despite its many benefits, there are significant challenges to overcome before such a currency can be successfully implemented. Furthermore, it is not entirely clear if the BRICS is aiming to create a mere means of exchange between its members to settle transactions in international trade or is building something more grandiose, such as a Monetary Union, akin to Eurozone, with its own central bank. ‘For now, a Monetary Union is certainly out of the question,’ argues Kar Yong Ang, a financial market analyst at Octa Broker. ‘It would require years if not decades of preparation, harmonisation of central banks' policies and an agreement between...