During an otherwise uneventful week, the International Finance correspondents are having a party. The first destination for the flying journalist class is the Johannesburg summit, which has not only cast the BRIC nations into the spotlight but has also introduced a rejuvenated composition of member states. Ambitious assertions regarding unity, economic integration, and strategic cooperation have taken center stage, and the customary media channels appear to be embracing these prospects with an air of uncritical acceptance.

Any respectable European economist would undoubtedly reference the past 23 years of European history and emphasize the concept of a “non-optimal currency area” until the phrase resonates ceaselessly in your ears.

But to quote an overused sentence: “Is it different this time?”

Well, partially.

Chart 1 BRICS (ex RUB and with SAR) FX vs USD YTD

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