![]() ![]() ![]() And central banks have sought to shift more of their currency reserves away from the dollar and into gold.Īll the BRICS nations have been critical of the dollar’s dominance for different reasons. Iraq, Saudi Arabia and the United Arab Emirates are actively exploring dollar alternatives. Over the past year, Russia, China and Brazil have turned to greater use of non-dollar currencies in their cross-border transactions. The BRICS countries have been pursuing a wide range of initiatives to decrease their dependence on the dollar. dollar for international trade and finance – has been accelerating following the Russian invasion of Ukraine. Yet de-dollarization – or reducing an economy’s reliance on the U.S. dollars, and the dollar accounting for 58% of global foreign exchange reserves, the dollar’s global dominance is indisputable. With 88% of international transactions conducted in U.S. But what currency discussions do show is that the BRICS countries are seeking to discover and develop new ideas about how to shake up international affairs and effectively coordinate policies around these ideas. ![]() That all said, a new BRICS currency faces major hurdles before becoming a reality. have raised concerns among other countries about their dollar-denominated debt and the demise of the dollar should the world’s leading economy ever default. Meanwhile, rising interest rates and the recent debt-ceiling crisis in the U.S. And while the BRICS countries have been seeking to reduce their reliance on the dollar for over a decade, Western sanctions on Russia after its invasion of Ukraine have accelerated the process. The BRICS summit comes as countries across the world are confronting a changing geopolitical landscape that is challenging the traditional dominance of the West. Among the items on the agenda is the creation of a new joint BRICS currency.Īs a scholar who has studied the BRICS countries for over a decade, I can certainly see why talk of a BRICS currency is, well, gaining currency. In August 2023, South Africa will host the leaders of Brazil, Russia, India, China and South Africa – a group of nations known by the acronym BRICS. ![]()
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