Yes it is true that due to the high volumes of bilateral trade it makes sense for countries to hold RMB, but that is predicated on a mutual trade in national currencies, so China will also be holding reserves of the currencies of different countries with which they wish to trade.
And yes, a BRICS “exchange currency” is almost certainly coming at some point, but it won’t be actually used as currency domestically in the BRICS countries like the Euro is in the EU. It will be used to settle balance of payments in international trade deals. I fully expect every BRICS member to retain sovereign control over their own currency, or at most cede that control to regional blocs, like say if at some point we see a South American Union or a regional African Union, and these may have a common currency.
Yes it is true that due to the high volumes of bilateral trade it makes sense for countries to hold RMB, but that is predicated on a mutual trade in national currencies, so China will also be holding reserves of the currencies of different countries with which they wish to trade.
And yes, a BRICS “exchange currency” is almost certainly coming at some point, but it won’t be actually used as currency domestically in the BRICS countries like the Euro is in the EU. It will be used to settle balance of payments in international trade deals. I fully expect every BRICS member to retain sovereign control over their own currency, or at most cede that control to regional blocs, like say if at some point we see a South American Union or a regional African Union, and these may have a common currency.