The ongoing global financial crunch and confrontational U.S. foreign policy have led to BRICS countries deciding to ditch the dollar. Russia ignored the U.S. sanctions after the Biden administration tried to impede its economy by waging war and invading Ukraine. China and Russia now settle global trades using the Chinese Yuan and France settled an LNG gas trade with the same currency. Reports state that several African countries are closely watching the developments of BRICS’ upcoming policies to oust the U.S. dollar.
Also Read: World Could Ditch U.S. Dollar, Create New Global Currency System: NYU Professor
Will Africa Ignore the U.S. Dollar & Trade With BRICS Currency?
African countries depend on the U.S. dollar for trade, as their currency is not strong to sustain on a global scale. During a recent interview in Africa News, Aly-Khan Satchu, an economist and CEO of Rich Management explained how BRICS’ new currency could affect and reshape African countries. When asked “How BRICS replacing the U.S. dollar will impact African countries”, Satchu said that African nations are watching the developments on the sidelines.
Also Read: Will the U.S. dollar Collapse Now That BRICS Are Developing Their Own Currency?
“African countries are watching on the sidelines and they’re currently under tremendous pressure because of inflation and shortage of dollars. So they are feeling the pain from the dollar-dominated economy and therefore look at BRICS as a safety valve”.
Satchu predicted that African nations could embrace BRICS currency if things fall into place after the summit in August. “I fully expect African countries to embrace the BRICS currency”.
The economist added that the African country’s major trading partner in recent years is China. Therefore, it won’t be difficult for the continent to embrace the new currency and ditch reliance on the U.S. dollar.
Also Read: BRICS Advancing To Eliminate U.S. Dollar Financial System
“Africa’s biggest trading partner is China and they need policies (that help their economy). Therefore, I suspect African countries could embrace such a currency if such an option comes going forward,” he said.
You can watch the full video of Satchu explaining why African nations would prefer the BRICS currency here.