BRICS Currency Is Gaining Momentum, Officials Affirms

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BRICS is an intergovernmental organization that has recently announced the development of a new currency amid the de-dollarization movement. 

Primary Goal of BRICS Currency

This currency is intended to facilitate cross-border trade among the BRICS nations, which include Brazil, Russia, India, China, and South Africa. 

In light of the bloc’s ongoing efforts to de-dollarize, Russian President Vladimir Putin recently held a meeting with his Chinese counterpart, Xi Jinping with the aim to strengthen relationships between the two countries. 

In 2023, Iran became one of the five nations to join the expanded BRICS during the bloc’s annual summit, marking its first expansion effort. 

According to a TASS report, Iran’s ambassador to Russia, Kazem Jalali, revealed that Russia and Iran are collaborating on this initiative as he described the diplomatic ties as a “golden age”

Over 60% of trade between the two countries is already conducted in rubles or rials. This strengthens the use of local currencies within BRICS trade, promoting regional economic growth, he officially mentioned. 

BRICS: On a mission to set free from US Dollar Supremacy 

As the discussion of de-dollarization grows, the BRICS coalition has been formulating a comprehensive strategy to establish a diverse and balanced world with the Russian President spearheading the project. 

Brazil’s President, shares the same sentiment, questioning why all countries are dependent on the dollar for trade. The voices advocating for alternatives to the dollar are gaining prominence in international discussions.

These recent developments challenge the notion that the stability of the dollar’s reign is stable because it is the one-eyed currency in a land of blind competitors like the euro, yen, and yuan. 

As one economist aptly put it, “Europe is a museum, Japan is a nursing home, and China is a jail.” While this statement holds some truth, a currency issued by BRICS would bring a new dynamic.

In contrast to this notion, Jeremy Allaire, the CEO and co-founder of Circle has made a strong case for the defense of the US dollar 

He pointed out that countries such as China have been actively working to promote the internationalization of the Chinese yuan, with the goal of challenging the dominant position of the dollar.

BRICS: Will the US dollar be able hold its ground?

Recent reports suggest that there has been a notable decrease in the dollar’s prominence over the past year. In 2023, it was observed that approximately one-fifth of all oil trades were conducted using other local currencies. 

A key factor contributing to this shift is the emergence of Central Bank Digital Currencies (CBDCs) as it poses a potential threat to the US dollar’s supremacy in cross-border transactions.

The International Monetary Fund (IMF), also known as the World Bank, has officially acknowledged the risks posed by BRICS nations and other local currencies to the US dollar. 

In a surprising move, the IMF has even launched its own CBDCs platform to facilitate cross-border settlements.

Robert Kiyosaki, author of ‘Rich Dad Poor Dad, even had a hunch about the potential US dollar crash. He urged users to invest in Bitcoin as a protective measure against the launch of BRICS Crypto which is expected to be backed by gold.

 

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