In a recent article discussing the BRICS currency, economist Jim Rickards discussed the “unprecedented,” arrival of the currency. Moreover, the author of Currency Wars discussed the currency’s potential to displace the US dollar, and how the world is “unprepared for this geopolitical shockwave,” in recent remarks.
The upcoming BRICS summit is set to be the setting for discussion regarding the developing currency. However, as expansion conversations also abound, the potential reach of the currency continues to grow. Subsequently, Rickards predicts an arrival that could be unlike anything the global financial world has seen.
Economist Prefaces Unprecedented BRICS Currency
The BRICS nations have embraced enhanced de-dollarization efforts in recent months. Indeed, those actions have seemingly set the course for the arrival of the bloc’s own alternative currency. One that could eventually displace the US dollar as the global reserve currency.
Now, speaking of the BRICS currency, economist Jim Rickard has discussed its “unprecedented” arrival. Moreover, in an opinion piece at the Daily Reckoning, he has foreshadowed just what its arrival could mean. Ultimately remarking on the massive impact it could have.
“On Aug. 22, about 2 1/2 months from today, the most significant development in international finance since 1971 will be unveiled,” Rickards wrote. “It involves the rollout of a major new currency that could weaken the role of the dollar in global payments and ultimately displace the US dollar as the leading payment currency and reserve currency. It could happen in just a few years.”
Additionally, Rickards remarked on the unprecedented nature of this ascension. “The process by which this will happen is unprecedented, and the world is unprepared for this geopolitical shock wave,” he wrote.
Expansion Could Fuel its Growth
Subsequently, Rickards referenced the growing list of nations expressing interest in joining the bloc. Specifically, the more than 20 countries that have submitted requests for membership. Indeed, Rickards noted that this expansion shows “BRICS is not just another multilateral debating society.”
“They are a substantial and credible alternative to Western hegemony. BRICS acting together is one pole of a new multipolar… world,” he wrote. Additionally, speaking on the currency’s role in fighting the prominence of the US dollar. Stating that an expanded BRICS “presents a realistic effort to de-dollarize global payments and eventually global reserve.”
As with much of the discourse surrounding a BRICS currency, this is all potential. However, there is no argument that the potential is there. Moreover, with expansion on the horizon, a BRICS currency should already build on ongoing de-dollarization practices. Subsequently, creating an optimal situation for it to build on those efforts, and reach its potential.