folks misread this all the time. there will be no brics currency. there will be, however, a settlement mechanism outside usd and swift since we weaponzied the both. the mechanism can be simply a barter system with central bank ledger offset, or currency swap agreements.
Oh, I know there are plenty of fools out there proposing a return to the gold standard. And I am fully aware that there are such proposals among the BRICS to adopt a common currency supported by gold. Lulu in Brazil is one. He's a minor hero, but obviously he is not an expert on sovereign currency. It simply can't work. I have explained why in ET posts. Let them try.
Although there probably won't be a Brics currency, as you say, yet there is no "misreading". The "folks" are reading what Lula is suggesting, at least be explored. Kinda like when Trump suggested we explore using Clorox as a treatment for Covid infection. Both a return to the gold standard and injecting bleach have about the same probability of success. Similarly, Trump is on an equal plane with Lula when it comes to understanding anything the least complex, e.g., money issued by the State. Nevertheless, I am a big Lula fan. He, in his prior term of office, did much for the wonderful people of Brazil, and now, having gotten himself elected again after serving his prison sentence under that right-wing pig Bolsonaro, will make Brazil Wonderful again. He's orange like Trump, but Lula's orange comes from working under the bright Brazilian sun, unlike pinky Trump whose orange comes from a bottle.
what lulu wants, among many other leaders, is to dethrone dollars. gold standard is just a metaphor. anything that can be anchored will be tried. personally i prefer the barter system, convert value to btu and calories, that is basic human needs.
I wanted to give you a like, but then you spoiled it with the barter nonsense. Please tell me your just trying to make some point I did not understand with this "barter" bit. None of us believe the dollar will maintain it's current dominance as a reserve currency going forward. Everyone expects this role to be more an more shared with the other strong currencies. There is an obligation that goes with being a reserve currency, and although overall it is quite an advantage to be the supplier of a reserve currency, it isn't all gravy.
BRICS as a currency is over blown. These countries don't trust each other in the first place. How many of the are actively involved in conflicts? You have India and China clubbing each other in a border dispute, but they can trust each other with a common currency? I feel a lot of this comes from a Western academic viewpoint where US is the bad guy and everyone else would just get along. Between India, Russia and China there have been how many wars? I wouldn't be surprised if we see the collapse of the Euro before we ever see BRICS get off the ground. As people are learning with Europe, a common currency means a common credit card account. Do these people really thing a bunch of dictatorships are going to cede authority over their budget to a supra-national authority?