With the BRICS Summit arriving in a few months, one finance expert has predicted a major announcement that could have a massive impact on the US dollar. Indeed, the BRICS alliance is widely expected to fast-track its de-dollarization efforts at the upcoming event.
Earlier this year, it was revealed that Russia and Iran were working on the development of a BRICS currency. Its arrival could spell doom for the greenback, as experts note that digital currencies could greatly threaten the global reserve status of the currency.
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BRICS Summit Announcement to Challenge the US Dollar?
Over the last two years, the BRICS economic alliance has enjoyed tremendous growth. At its 2023 annual summit, it announced the inclusion of 5 nations. The collective’s first expansion plan since 2001, welcomed a plethora of economic influences into the already growing alliance.
Now, at the impending BRICS Summit, one expert predicts an announcement to target the US dollar. Specifically, Christopher Granville, the director of global political research and GlobalDataTS Lombard, recently discussed what could be a financial game changer.
Granville wrote that he expects further attention to be given to the alliance’s de-dollarization initiative. Moreover, he discussed how Central Bank Digital Currency (CBDC) systems could be important to these overall goals. Specifically, he noted that BRICS digital currency developments could be embraced on a global scale.
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Speaking of BRICS digital currency development, Granville said a “US-insulated CBDC solution still looks” to be in the best interest of a plethora of countries. Thereafter, he noted that participation in the digital currency sphere will also create a massive challenge for the US dollar.
Granville stated that a non-dollar digital currency platform “would weaken one of three planks of the US dollar’s global reserve status.” Conversely, a US-insulated” digital currency platform is already being developed by BRICS.
The implementation of the system at the upcoming summit could provide the US dollar with an unforeseen challenger. Moreover, it will magnify the issues already facing the currency. With expansion also expected, the alliance could be set to severely hinder the greenback. Specifically, it targets its global reserve status.