BRICS expands, A Look at new members’ currencies a...

BRICS expands, A Look at new members’ currencies and the possibility of a common future

Philemon Jambaya

Assistant Editor

The recent addition of Saudi Arabia, Iran, Ethiopia, United Arab Emirates, and Egypt to the BRICS economic bloc brings a vibrant mix of currencies to the table. Let’s explore the unique histories and denominations used by these new members:

Saudi Arabia: The Saudi Riyal reigns supreme, with its roots tracing back to Ottoman and Spanish coins. Interestingly, 1 Riyal is divided into 100 Halalas.

Egypt: The Egyptian Pound boasts a rich past, once linked to the Maria Theresa Thaler. Today, it’s a familiar sight for Egyptians, with banknotes featuring captivating designs.

Ethiopia: The Ethiopian Birr replaced the Ethiopian Dollar in the 1970s. Its colorful notes showcase the nation’s people, landscapes, and historical landmarks. Coins feature the iconic roaring lion.

United Arab Emirates: The Emirati Dirham, established in 1973, is a descendant of the ancient dirham used in the Arab world. It replaced various local currencies, unifying the financial landscape.

Iran: The Iranian Rial took over from the Toman in 1932. While the Toman still lingers in price quotations, the Rial dominates daily transactions. Banknotes showcase cultural and historical treasures.

A Common BRICS Currency on the Horizon?

The BRICS nations are actively exploring the creation of a single currency for the group. This initiative extends to the new members as well. Discussions are ongoing, with Russia’s 2024 BRICS presidency prioritizing the topic. Statements from Brazilian and Iranian officials suggest progress on establishing a shared payment system within the bloc.

Will a BRICS currency challenge the US dollar’s dominance?