BRICS’s New World Reserve Currency will Challenge the US Dollar’s Dominance

Around 24 nations around the globe are currently working on joining a new international alliance called BRICS. The alliance started between five nations, namely Brazil, Russia, India, China, and South Africa.

This alliance has continued to gain more nations as allies and is now on its way to launching a new digital currency for BRICS that will support the international trading syndicate among BRICS nations. The news about this new digital currency is virtually everywhere on account of its economic impact.

Many experts have dubbed the upcoming BRICS currency as a way to circumvent the international exchange status of the USA. Various news outlets have discussed the role of BRICS currency in propagating the de-dollarization effect.

BRICS ambassador for South Africa, Anil Sooklal, has told Bloomberg in the latest interview that many new nations are currently looking to join the new international government venture.

13 More Countries Want to Join BRICS

Sooklal has shared some important statistics with the media. He has revealed that around 13 countries are in the process of joining BRICS. On the other hand, around six more countries are the ones who have just initiated talks to make the shift.

Some of the most noteworthy new members of this alliance are namely Saudi Arabia, Argentina, United Arab Emirates, Egypt, Bahrain, Indonesia, and Iran. Meanwhile, there are also two other nations hailing from East Africa and another one from West Africa.

BRICS was created as far back as 2006; however, the group did not have enough political incentive or understanding to become an international stronghold like today. Back in the day, this alliance did not include South Africa, which joined as recently as 2010.

Sputnik is a Russian news agency that informed that the BRICS currency is still in the early stages of development. Alexander Babakov, the deputy chairperson of Duma, has shared some important insights on the matter.

Some reports published by the Russian news outlet Duma have claimed that the new BRICS fiat currency has a chance of being backed by assets. The possible assortment of assets that can be used to back up this currency may include precious metals such as gold.

However, there may be other assets or commodities to back the new trade currency. The new currency can bring about some big changes in the trade and economic landscape of the world.

At present, many nations are working on issuing additional details on the latest development. The press could issue the next big phase of the development before the end of the summer season. The next summit of BRICS is set to host in South Africa later this year.

There is an increasing possibility that the next meeting will take place in August or later. There are many implications of this new currency, such as lesser dependency on USD as an international medium of exchange.

On the other hand, it may also help the member nations save costs with their international trade agreements as they don’t have to cover the difference between their national reserves and the high value of USD.