It has been widely reported that a common BRICS currency will be discussed at a symposium next month. However, the Governor of the Bank of Russia, Elvira Nabiullina, stated that launching a common currency could be challenging.
There have been claims that the output of the economies of Brazil, Russia, India, China and South Africa (BRICS) are now bigger than the combined G7 economies. The assertion adds weight to the potential impact of a new currency.
Our own research found that it depends on the source of the data. Using World Bank GDP statistics for 2022, we found the G7 combined GDP is 69% larger than BRICS. In fact the BRICS GDP is only marginally more than the economy of the United States.
But that latter statistic is relevant as the United States’ dollar is the dominant world currency. However, the size of the economy is only one factor contributing to the dollar’s dominance.
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