Upgrading Bretton Woods: A Case for “Currency Baskets”

... BRICS reserve currency basket could act in concert with the stronger role performed by BRICS national currencies to take on a greater share of the total pie of currency transactions in the world economy. There are a number of advantages exercised by currency baskets such as the proposed BRICS reserve currency. First, there is the reduction in the dependency/exposure to any single country risk , with cross-regional currency baskets reducing the exposure to risks pertaining to any single region. Second, there is the reduction in the ...