Yaroslav Lissovolik, a member of the Russian International Affairs Council (RIAC) and head of the analytical department at Sberbank, said the “BRICS reserve currency has taken on particular significance in recent months” following Russian president Putin’s remarks at the BRICS Summit. The analyst detailed that there’s also been recent legislation and debates concerning the “expediency of creating a new reserve currency.”

Lissovolik detailed that a new BRICS reserve currency won’t be created to replace the national reserve currencies used by each of the nations, but rather to “complement these national currencies.” The Sberbank analyst said a brand new reserve currency could have a “transformational effect on the international financial system,” as he believes there’s a “notable shortage of reserve currencies” in the global economy.