Amid rumors of a developing BRICS currency, one expert has warned that such a development could greatly threaten the US Dollar’s dominance in both the oil and global banking sectors. Specifically, Nasdaq has released a comprehensive warning regarding the impact that the BRICS alternative could have on the greenback.
The economic alliance has stood firm in its de-dollarization efforts. Throughout the last several years, the bloc has embraced ways to increase native currency usage in order to lessen international reliance on the West. That quest for a multipolar world could fast track with the impending 2024 BRICS Summit
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BRICS Currency Threatening US Dollar in 7 Key Sectors, Nasdaq Warns
The growth of the BRICS bloc has been a massive geopolitical factor of the last several years. In 2023, the bloc enacted its first expansion effort since 2001. Specifically, it welcomed the United Arab Emirates (UAE), Egypt, Iran, and Ethiopia into the alliance. That saw the bloc reach a total of nine nations as it sought to magnify its role in global economics.
That could take a massive step forward this year. Indeed, the bloc is reportedly looking to debut its new blockchain-based payment system in 2024. Moreover, there have been reports a trade currency could be nearing arrival. Such a debut would have massive repercussions on global finance, one expert warns.
The creation of BRICS currency could threaten the US dollar’s dominance in oil and global banking, Nasdaq warns. Indeed, the stock exchange identified seven areas that could see massive change if the global south developed a currency. Specifically, in how these sectors rely on the greenback.
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According to a recent report from the exchange, a BRICS currency could also affect commodities, international trade, technology, tourism, and the foreign exchange market. “A potential shift toward a new BRICS currency could have significant implications for the North American economy, and investors’ operations within it,” the exchange said.
“A new BRICS currency would also introduce new trading pairs,” they also noted. Moreover, they claimed the currency would “affect market volatility,” requiring investors to rethink strategies. Altogether, it would throw a massive wrench into the global finance market.
These changes would be huge for the dollar. With the adoption of enough countries, there could be a monumental shift. The bloc has already confirmed that more than 159 participants are looking to adopt the BRICS payment systems. A similar number could have interest in a trade currency.