The BRICS alliance, which consists of five major emerging economies: Brazil, Russia, India, China, and South Africa. According to a Russian official, the alliance is working to create its own currency, which would be used for international transactions.
The idea behind this move is to reduce the alliance’s dependence on the US dollar and the Western-dominated financial system. The US dollar has traditionally been the dominant currency for international trade and finance, but the BRICS countries are looking to create an alternative that would give them more control over their own financial destiny.
With Iran and Saudi Arabia showing interest in joining the BRICS alliance, it looks like the dollar is about to get hit with a knockout punch. But it’s not just those nations; even African nations are saying goodbye to the dollar, leaving it in a tough spot.
The official did not provide any specific details on the timeline or the implementation of the currency, but he did say that the alliance is working on a number of initiatives to strengthen its economic ties and reduce its reliance on the Western-dominated financial system.
This is not the first time that the BRICS alliance has talked about creating its own currency. In 2013, the group announced plans to create a development bank and a reserve fund, both of which are now operational. The creation of a new currency would be another major step in the alliance’s efforts to challenge the existing global financial order.
The BRICS alliance is looking to assert itself as a major player in the global economy, and the creation of a new currency could be a significant part of that effort. However, it remains to be seen whether the alliance will be able to successfully implement this ambitious plan.
So what’s next for the greenback? Well, let’s just say it might be time to invest in some other currencies before the dollar’s last breath.
Source: TFI Global