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The BRICS countries are working on establishing a new reserve currency to better serve their economic interests, Ambassador at Large of Russia's Foreign Ministry Pavel Knyazev said.

It will be based on a basket of the currencies of the five-nation bloc, RT reported.

"The possibility and prospects of setting up a common single currency based on a basket of currencies of the BRICS countries is being discussed," Knyazev said during a discussion about expanding BRICS and the Shanghai Cooperation Organization.

According to the diplomat, member states are "actively studying mechanisms" to exchange financial information to develop a reliable alternative for international payments.

In an effort to reduce reliance on the dollar and euro, BRICS is set to build a joint financial infrastructure that will enable a reserve currency to be created.

The group, which comprises Brazil, Russia India, China, and South Africa, has been boosting economic ties, with trade turnover steadily growing despite restrictions brought on by the pandemic and conflict in Ukraine, RT reported.

BRICS had previously said it was working on establishing a joint payment network to cut reliance on the Western financial system. The member countries have also been increasing the use of local currencies in mutual trade.