With the event set to arrive in a matter of weeks, speculation is swirling that the BRICS economic alliance could be set to unveil a de-dollarization roadmap at its upcoming 2024 manual summit. Indeed, the bloc is poised to ready a game-changing announcement for the upcoming gathering.
In 2023, the bloc capped off its summit with a five-country invitation to join the alliance. The move was the group’s first expansion effort since it welcomed South Africa in 2001. Moreover, it resulted in the United Arab Emirates (UAE), Egypt, Iran, and Ethiopia joining. This year’s announcement should rival that occurrence in scope and impact
Also Read: 23 Countries Officially Apply To Join BRICS Alliance
BRICS Rumored to Introduce De-Dollarization Roadmap at Crucial Summit
The BRICS bloc has grown immensely in the last several years. Not only has it expanded in size, but it has grown in relevance. That influence should only continue to expand in the coming years. Moreover, it could be set in motion by the events of October’s crucial meeting.
The BRICS bloc is rumored to introduce a de-dollarization roadmap at its 2024 annual summit. Indeed, the event is speculated to be capped by the unveiling of key developments that will see it forgo usage of the greenback. Specifically, in favor of local currencies and the collective’s own developments.
A new report states that the bloc is “expected to introduce a multicurrency platform along with a roadmap for a gold-backed BRICS trading currency.” Both reveals would be monumental for the collective. Additionally, they would provide extensive challenges for the US dollar.
Also Read: BRICS Official: Native Currency Trade Already Exceeds US Dollar
Since the inaction of Russian sanctions in 2022, the Global South has facilitated a move away from the greenback. They have embraced greater local currency trade to great effect. According to the Atlantic Council’s Dollar Dominance Meter, the global share of US dollar reserves has fallen since 2002, the first full year of the BRICS alliance.
The highly-anticipated BRICS Pay system is set to be the bloc’s answer to SWIFT. A Western-dominated payment platform, it will fast-track trade settlements in local currencies. Moreover, it should make those trade dealings even easier.
Yet, there is still consideration for a BRICS native currency. Although this is more of a longshot, it would explain the bloc’s years-long accumulation of gold. Furthermore, it would make trade within the bloc even easier. Once again, this creates an avenue where US dollar usage is not necessary.