Posted on January, 8, 2024 at 08:55 am
The BRICS collective—Brazil, Russia, India, China, and South Africa—is contemplating an expansion of its agricultural collaboration in 2024. The proposed inclusion of additional grain-importing countries like Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) could potentially bring balance to the production and consumption of key grain crops within the group. A letter from the Russian Union of Grain Exporters, or Rusgrain Union, hints at the establishment of a unique grain trading platform by the BRICS nations, possibly circumventing the US dollar for transactions.
Eduard Zernin, Chairman of the Rusgrain Union, suggests that Russia could act as a supplier of last resort, with the possibility of other net exporters joining this platform in the future. The envisioned platform would involve settlements in the native currencies of BRICS countries, even considering the creation of a special clearing currency. The initiative, however, would necessitate commercial participation, with a crucial aspect being the determination of the clearing currency and the location of the clearing center.
This move is predicted to encounter significant opposition from Western countries, particularly following the sanctions placed on Russia due to its military operation in Ukraine. Despite the expected challenges and countermeasures, the market share held by the US and the EU could see a decrease as the BRICS nations advance with this potentially game-changing plan.
The web page content discusses the substantial grain production and consumption within the BRICS countries, showcasing their potential to create their own grain exchange. It also provides a statistical overview of the wheat, corn, and soybean trade, underlining the importance of these commodities in the global market.
Source: BNN