A total of 24 countries are interested in accepting and trading with BRICS currency when it launches on the International stage. The group of developing countries is moving to bypass the U.S. dollar to settle global trade. The dollar’s dominance could weaken if the BRICS currency gains prominence, giving Eastern nations more financial power than the United States.
South Africa’s BRICS ambassador Anil Sooklal said that 19 countries have shown their interest to join the alliance, reported Bloomberg. Sooklal confirmed that 13 countries have formally sent applications to join the BRICS alliance. He added that five other countries have informally requested to be a part of the block.
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BRICS comprises five countries Brazil, Russia, India, China, and South Africa. Therefore, a total of 24 countries are participating to dethrone the U.S. dollar from its global reserve status.
24 Countries Interested In BRICS Currency
The countries that have shown interest to join the BRICS alliance are Saudi Arabia, the United Arab Emirates, Argentina, Egypt, Bahrain, Indonesia, Algeria, and Iran. Also, two unnamed countries from East Africa and one from West Africa have sent their applications, according to the ambassador.
The development shows that a handful of countries are interested to trade in the BRICS currency. The nations want to move away from the U.S. dollar and end American financial supremacy. The dollar comes with a risk of debt that could wreak havoc on local currencies if the U.S. slips into a recession.
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If more countries ditch the dollar, the U.S. will have no means to fund its deficit, making the dollar weak. This could make the soon-to-be-released BRICS currency gain prominence in the new financial world order.
If nations around the world settle for trade with the BRICS currency, the dollar’s value could plummet. Therefore, the fate of the U.S. dollar will be decided in the next BRICS summit.