High US rates motivate Brics nations to push local currency trade
While Brics finance ministers did not explicitly endorse the idea of a common currency, they promoted the use of local currencies in trade among the member countries
28 August 2023 - 17:27
Decades-high US interest rates have not only resulted in capital flight from emerging markets but have also added to global borrowing costs, leading to the latest push by Brics countries — especially India and Brazil — to motivate for member countries to create a common currency for trade and investment between each other.
The latest hawkish comments by US Federal Reserve chair Jerome Powell, who made it clear on Friday that the Fed was prepared to hike interest rates further if inflation remained too high, places even more pressure on countries with dollar-denominated debt. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.