The 15th BRICS summit held this year ended on a positive note as the alliance inducted six new countries. The induction was historic as BRICS did not expand the bloc for more than a decade. Saudi Arabia, UAE, Argentina, Egypt, Iran, and Ethiopia are invited to join BRICS and be a part of the revolution. In the latest update, Russia’s former advisor to the President, Sergey Glazyev, gave insights about the BRICS currency’s ambitious agenda.
The economist-turned-politician spoke in length about the upcoming BRICS currency and the group’s ambition to uproot the US dollar’s global supremacy. BRICS wants to dethrone the US dollar as the world’s reserve and replace it with their yet-to-be-launched currency.
The BRICS bloc has already begun using local currencies for trade ending dependency on the US dollar for cross-border transactions. Read here to know how many sectors in the US will be affected if BRICS stops using the dollar.
BRICS Currency Will Grow More Attractive Than the US Dollar, Pound, & Euro, Says Glazyev
Glazyev confirmed that the BRICS currency is “almost ready” and its launch could be decided in the 16th summit in 2024. The Russian minister is so confident about BRICS currency’s prospects, that he predicted it will grow more attractive than the US dollar, Pound, and Euro.
Also Read: 3 Ways BRICS Could End U.S. Dollar Supremacy
The minister hinted that the upcoming BRICS currency will be linked to the national currencies of the members. In addition, he pointed out that the currency will be linked to the exchange commodities market.
“It is based not only on a basket of national currencies of the member countries but also on a basket of exchange commodities. The model shows that this currency will be very stable and much more attractive than the dollar, pound, and euro,” he said.
However, Glazyev’s statements seem to be too optimistic as the currency is not released and put to the test in the markets. A new currency needs to gain the trust of other countries and traders to make it big.
Until then, the US dollar is the de facto supreme currency and no other tender comes close to dethroning it. In short, the US dollar now remains the king of the world despite facing several challenges from external factors.