China remains the main force that is driving the BRICS expansion process intending to dethrone the U.S. dollar. The Chinese government is pushing nations around the world to join the bloc and accept the soon-to-be-released currency. The Communist country is advancing to decouple the U.S. dollar from its global reserve status sending the USD downward. Russia is the next in line in the quest to challenge the dollar’s hegemony by pressing sanctions against its economy.
A recent report suggests that Russian President Vladimir Putin is convincing the oil-rich Saudi Arabia to join the BRICS bloc. Russia and China are fast-tracking a payment technology that could make trading with the yet-to-be-released BRICS currency easier for the exchequer.
Also Read: BRICS To Elaborate a Common Framework for European Countries
China Using BRICS to Dethrone the U.S. Dollar?
Reports state that China is using BRICS as a weapon in its quest to dethrone the U.S. dollar as the global reserve currency.
The Chinese government is eyeing for the U.S. dollar collapse and BRICS is the stepping stone to turn the idea into a reality. However, the other three countries India, Brazil, and South Africa remain skeptical about China’s prospects of world domination.
Also Read: Saudi Arabia To Challenge U.S. Dollar’s Supremacy by Funding BRICS Alliance
The nations fear that Jinping could impose his vision of the global order when the new currency enters the international stage.
India remains varied about the Xi Jinping administration’s plans to sideline the U.S. dollar and promote its local currency, the Chinese Yuan. Cracks have already emerged in BRICS as the Indian government is worried about China taking center stage in global finances.
Also Read: BRICS: 16 Asian Countries Move to Ditch the U.S. Dollar
The Indian government has been at odds with China for nearly two decades with border disputes erupting regularly. India also banned Chinese apps like TikTok and Shein in 2020 to protect the privacy of its citizens.
The next BRICS summit will be held in Johannesburg, South Africa, in August. The alliance of nations will combinedly decide on the formation of a new currency at the summit.