Rodney Walker of Glenbrook Advisory Gives an Economic Overview of BRICS
BRICS is comprised of Brazil, Russia, India, China, and South Africa – countries that are moving further away from the leading currencies, including the US dollar, the European euro, and the English pound.
Canadian’s premier wealth management firm Glenbrook Advisory has been following the recent developments in the BRICS space for years. The bloc recently announced its plan to release a new common currency, and Glenbrook Advisory’s experts wanted to educate their clients and consumers about its economic impacts.
Rodney Walker, a seasoned wealth management specialist spoke on the firm’s behalf, touching on the most notable effects a new currency could have in a volatile, unstable global market.
As stated by Alexander Babakov, a Russian lawmaker, BRICS is poised to develop a currency “that does not defend the dollar or euro”. Rodney noted that the all countries forming the BRICS bloc have already played financial and political moves (on varying scales) built on de-dollarization strategies, stating that creating and ultimately deploying a new currency is the logical next step.
Naledi Pandor MP, South Africa’s foreign minister divulged that the next BRICS summit will discuss the feasibility of introducing the bloc’s currency. South Africa will host the summit, and according to the latest reports, its leaders are pushing for a careful debate.
Rodney said that the cooling political relationships between members of BRICS and Europe & USA may accelerate the decision to draft more concrete plans for the launch of a new currency.
Glenbrook Advisory’s experts agree with Rodney’s assessment that creating a currency that could remain stable and compete with the leading alternatives is not a process that the members of the BRICS block would rush.
However, all countries that form BRICS enjoy inflation rates that are lower than usual, giving them more than enough leverage to start taking action toward launching a new currency. Brazilian inflation rate dropped to 4.65% from 5.60%; Russian inflation rate is swinging between 11% and 7%; Indian inflation rate is 5.66%; South African inflation rate was 7.1% in March while China’s year-over-year inflation rate is merely 0.7%. Financially, BRICS could weather a few setbacks during the transition period, should they decide to launch and adopt a new common currency.
The BRICS currency would serve the members of the bloc as their interests lie in perfect harmony. As for what this would mean for the rest of the world, Rodney notes that it may compete with the dollar and euro but all other potential impacts could only be speculated.
Glenbrook Advisory strives to keep its clients well-informed about all developments in the global financial space while being committed to providing them with the best future-proof wealth management solutions.
More information about Glenbrook Advisory is available on the company’s official website.
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