Monetary Elite from Multiple Camps Plot Currency Strategies

As investors look for clues about what monetary central planners are thinking at Jackson Hole, the BRICS countries – Brazil, Russia, India, China, and South Africa – are holding a summit of their own in Johannesburg.

There, South Africa’s president announced that the BRICS alliance will be expanding to include Saudi Arabia, Iran, the United Arab Emirates, and other African nations. Argentina has also been invited to join.

Among the goals of the growing BRICS bloc is to create a new currency order. Brazilian president Lula da Silva called for the creation of a BRICS currency to rival the U.S. dollar.

However, representatives of India and South Africa stated that developing a new currency is not yet feasible.

Russian officials had teased that the BRICS would move to establish a currency backed by gold. That may continue to be a long-term goal, but it’s not happening quite yet.

In the meantime, Russian president Vladimir Putin continues to advocate that BRICS countries switch away from the U.S. dollar in international trade. That means using rubles, yuan, and other national currencies as final payment.