ZIMBABWE is among the countries that have indicated interest in adopting the expected BRICS currency, in a move market watchers believe is meant to broaden the basket for locals.
BRICS is an acronym for the powerful grouping
of the world's leading emerging market economies, Brazil, Russia, India, China
and South Africa. Goldman Sachs economist Jim O'Neill coined the term BRIC
(without South Africa) in 2001, claiming that by 2050 the four BRIC economies would
come to dominate the global economy. South Africa was added to the list in
2010. The BRICS mechanism aims to promote peace, security, development and
cooperation.
Plans by the community to replace the US$ in
international trade are set to reach a new high when discussions on the
feasibility of introducing a common currency take place at a summit to be held
in South Africa later this year.
However, indications are that already, more
countries are registering interest to join the BRICS, an economic alliance and
accept a new currency.
South Africa's representative to BRICS,
Ambassador Anil Sooklal has hinted that the grouping is set to grow bigger this
year with more than 30 countries having formally and informally applied to join
the alliance.
The latest report indicates that the
countries ready to join the BRICS alliance are Afghanistan, Algeria, Argentina,
Bahrain, Bangladesh, Belarus, Egypt, Indonesia, Iran, Kazakhstan, Mexico,
Nicaragua, Nigeria, Pakistan, Saudi Arabia, Senegal, Sudan, Syria, the United
Arab Emirates, Thailand, Tunisia, Turkey, Uruguay, Venezuela, and Zimbabwe.
The development will come as a blow to the
United States of America and other Western nations, which will see their GDPs
dwindle to that of the BRICS.
Market watchers believe the move by Zimbabwe
is aimed at neutralising an insatiable appetite for the US$ among its citizens,
a development which authorities blame for continued economic shocks.
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