Hosting the 8th edition of the BRICS (Brazil, Russia, India, China, and South Africa) Summit in Goa, last weekend, India called for a greater intra-BRICS trade in each others' currency for protection from fluctuations that cause losses. Speaking at the launche of the first BRICS Trade Fair, Indian Vice President Hamid Ansari said, "We (BRICS countries) need to increase our trade in each others' currency to further pluralise trading currencies and lessen the use of a single dominant currency."
He added, "Transition to trade in national currencies will reduce the risk volatility and protect us from adverse fluctuations, which often cause huge economic and trade losses." The VP said that the BRICS would also need to push services trade liberalisation, including through measures for easier movement of people for commercial activity. "The proposal for a BRICS Visa on a long-term basis for genuine travellers is one such effort aimed at stimulating greater economic activity by enhanced mobility of our entrepreneurs."
The BRICS nations account for around 43 per cent of the world's population, 15 per cent of global trade, and 20 per cent of the world's investment flows. Even so, intra-BRICS trade in 2014 was a petty $297 billion, less than five per cent of the $ 6.5 trillion worth trade that the five countries had with the remaining of the globe that year. Ansari said that other than creating a business-friendly environment for investors and entrepreneurs, BRICS nations should support value-added trade to transform from raw material providers into key players in the global economy.
