So, will South Africa be joining, or should it be following, dedollarisation – arguably because South Africa is a Brics nation? Should you need reminding, Brics is the acronym for the supposed “five leading emerging economies” of Brazil, Russia, India, China and South Africa. Several countries have expressed an interested in joining Brics, namely Argentina, Iran, Indonesia, Türkiye, Saudi Arabia and Egypt.

As I wrote this piece on April 1, an online article titled ‘Brics nations working on creating new currency to be discussed at next leaders’ summit’ appeared on www.news.bitcoin.com. You might have thought this was an April Fools’ Day joke. If only . . .

The article said the Brics nations are working on developing a new form of currency, which is expected to be discussed at the next Brics summit, to be hosted in South Africa in August. The article cited the deputy chairperson of the Russian State Duma as saying: “The transition to settlements in national currencies is the first step. “The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future.”

The article also cited the recent announcement by the Presidents of Russia and China that they had agreed to adopt the Chinese yuan as a settlement currency with emerging economies. It also stated that the Chinese government had signed a bilateral deal with Brazil to facilitate trade using their national currencies. If you are counting, that leaves India and South Africa.

As for India, on March 29, the ‘Russia-India Business Forum: Strategic Partnership for Development and Growth’ took place in St Peterburg as part of the International Economic Forum, where the institution of a new economic association with a new shared currency was discussed, with the acknowledgement that China could play a crucial role in developing a common currency for the three nations. A top Russian official was quoted as saying: “New Delhi, Beijing and Moscow are the nations that now institute a multipolar world that is endorsed by the majority of governments. Its composition should be based on inducting new monetary ties established on a strategy that does not defend the US dollar or euro, but rather forms a new currency competent of benefiting our shared objectives.”

Russia argues that the US dollar and the euro only serve the interests of Washington and London instead of those of the broader global community; consequently Washington and London do not recognise Russia, India, and China as equal counterparts. Confirmation of the top dogs of the Brics nations?

The US dollar has hitherto been the world’s reserve currency – also known as an anchor currency – which means it has been the foreign currency held in significant quantities by central banks or other monetary authorities as part of their foreign exchange reserves. This ‘safe-haven currency’ can be used in international transactions, investments and all aspects of the global economy.

First printed in 1914, the US dollar became the world’s reserve currency in 1944, when it was so chosen at Bretton Woods. It is believed this has allowed the US government to borrow at lower costs, giving it an advantage in excess of $100-billion a year. If you need reminding, the Bretton Woods System of Monetary Management established the rules for commercial and financial relations among the US, Canada, Western European countries, Australia and Japan after the 1944 Bretton Woods Agreement. The Bretton Woods Conference took place in July 1944 in Bretton Woods, New Hampshire, US, as the battles of the Second World War raged in Europe and the Pacific.

Is it a coincidence that the latest deliberations are happening against the backdrop of what is currently the most observed war in the world? In the memorable words of Yogi Berra, “that’s too coincidental to be a coincidence”.