Brazilian economist Paulo Nogueira Batista, Jr. gave an interview to RT on Oct. 2, on the BRICS summit, and potential alternatives to the use of the dollar in trade and investment. Nogueira was the New Development Bank’s vice president at its founding, and also formerly Brazil’s Executive Director at the IMF. He kept his answers brief and general for the most part, perhaps due to the sensitivity to disruption of the BRICS “currency” discussions now ongoing before the upcoming conference in Kazan. He, however, made the following main points:
Payment in national currencies is growing fairly rapidly, and is good, but limited in its effect (in growth, presumably)—it is more critical that BRICS and partners develop a new reserve currency (i.e., a currency held in central bank reserves, used in central bank currency swaps, etc. in order to expand trade and investment). This does not mean a “single currency” replacing national currencies, but an alternative reserve currency “for international transactions.” It will be difficult: for example, will India agree? The U.S. dollar is a “weaponized, militarized” currency, which is weakening it. However, the United States absolutely insists on its use as the sole reserve currency, employing financial attacks on other nations, as well as military power and threats.