A growing number of countries are expressing discontent with the U.S. dollar and America’s global financial policies. The dissatisfaction comes at a time when the BRICS alliance is looking to sideline the U.S. dollar for international transactions. The displeasure against America’s hegemony perfectly coincided with the BRICS summit, when countries were looking at alternatives other than the U.S. dollar.
A total of 45 countries have expressed interest in joining the BRICS bloc in the weeks ahead of the summit. 23 countries have formally submitted their applications, while 22 other nations have expressed an interest in joining the group.
Also Read: 45 Countries Prepare To Join BRICS Weeks Before Summit
85% of the World’s Population Could Ditch U.S. Dollar if BRICS Launch New Currency
Andy Schectman, President of Miles Franklin, says that 85% of the global population could ditch the U.S. dollar “all at once”. If BRICS inducts all countries that are looking to join the alliance, the U.S. dollar could be dropped for cross-border transactions. Schectman sees Saudi Arabia as an essential player that could rally other countries to settle oil payments in local currencies.
Also Read: Will U.S. Economy Be Impacted if BRICS Trade In Local Currencies?
Schectman stressed that eventually, 85% of the global population could end reliance on the U.S. dollar if they joined the BRICS. “There is this cohesion of countries that have joined together to break free from the Western hegemony,” he said to Kitco News. “I look to Saudi Arabia as the linchpin of all of the issues surrounding the de-dollarization and the dollar hegemony.”
According to Schectman, if all groups such as BRICS, SCO, ASEAN, and GCC countries ditched the U.S. dollar, they would make up 85% of the population that would stop trading in the dollar. “If you put together the Belt Road Initiative, the BRICS, the Shanghai Cooperation Organization, and the Eurasian Economic Union, it’s is a very big deal,” he noted.
Also Read: BRICS Bank To Increase Funding in Local Currency, Ditching U.S. Dollar
“The Shanghai cooperation organization is the largest regional military and financial organization in the world. It represents about 60% of the Eurasian landmass and 40% of the global GDP,” he summed it up.