BRICS Summit
Digital currency, payment platform top agenda
When the leaders of the expanded BRICS meet at the Russian city of Kazan on October 22-24, the primary focus will be on establishing a payment settlement mechanism, ideally through creation of a unified BRICS digital currency. Sources said the countries of the group are likely to announce experimental use of digital currency within a year or two of the Kazan summit.
The option of creating a platform to link the central bank digital currencies (CBDCs) of member countries is also likely to be discussed. The problem, however, is not all member countries have digital currencies. The grouping is, therefore, likely to start with bilateral payment settlement using CBDCs.
BRICS countries are already settling payments among themselves in their national currencies. For example, almost 90% of payments between Russia and China are settled in yuan and rouble. Saudi Arabia, which is a new entrant into BRICS, has also entered into a deal with China to sell oil in yuan. India and Russia have, however, not been able to reach an agreement to trade in rupee and rouble.
Russia wants to repatriate its earnings from oil and defence supplies to India. Though the two countries are working on getting this money invested in the Indian stock market and in large joint projects in India, a BRICS payment solution will help resolve the payment challenges facing the two countries.
Jharkhand Polls
Hemant’s plan to fight more seats riles Cong
Jharkhand Chief Minister Hemant Soren’s decision to expand the influence of his party, the Jharkhand Mukti Morcha (JMM), has created ripples within the ruling alliance. Sources indicate that Hemant is striving for an independent majority for the JMM.
To achieve this, he aims for his party to contest at least 50 of the 81 seats in the state, a move that would require reducing the share allocated to his allies. In the last assembly election, the JMM, Congress, and Lalu Yadav’s Rashtriya Janata Dal (RJD) collaborated, with the JMM contesting 43 seats, Congress 31, and RJD 7.
This alliance proved successful, with the JMM winning 30 seats, Congress securing 16, and RJD capturing one. Sources suggest that Hemant believes the current disarray within the state BJP, coupled with the sympathy generated by his arrest among tribal communities, has created a favorable wave for the JMM. He feels confident that, given the present political landscape, the JMM could secure victory on its own.
According to sources, Hemant plans to allocate no more than 25 seats to Congress, three to the RJD, and one to CPI(ML), reserving 52 seats for himself. On learning about Hemant’s plan, the Congress has hardened its stance on alliance.
The party’s state in-charge Ghulam Ahmad Mir announced that if his party improves its numbers in the next election, it may demand rotational chief ministership in the state. The JMM responded to the suggestion by threatening to go it alone if Hemant’s leadership of the alliance was questioned. As the election approaches, tension between the allies is set to rise.