Talks of a new BRICS currency are on the rise amongst the alliance, with the de-dollarization mission garnering more attention. BRICS recently confirmed the development of the currency, and more support around it is being built. The nine-member alliance is expected to give updates on the new currency and expansion at its October Summit, but will the BRICS currency be worth as much as the US Dollar or Gold on launch?
Both Russia and Iran confirmed collaboration on a BRICS currency project in May 2024. Rumors about the development of the new currency began before the 2023 Annual Summit. The arrival of the currency would certainly bring monumental changes to global finance. Furthermore, the US is fully aware of the alliance’s recent developments and has sent out warnings about the future of its native dollar currency.
Recently, Iran also proposed a new idea for the upcoming currency. The country is supporting the de-dollarization initiative and wants to link all of the BRICS nations’ payment systems into one to overpower the US Dollar. If this were to happen, it is certainly possible that the BRICS currency could be worth more than the greenback. This even would be difficult though, as the greenback has been the most important and powerful currency in the world over the past few decades. Especially facing sanctions, the BRICS bloc will hope its new financial system will aid in traversing around those.
Can BRICS Currency Trump Gold?
As for Gold, this is much more unlikely. With speculation that the bloc’s currency will be backed by Gold, it will be hard for the currency to be worth more than the precious metal. Therefore, it’s unlikely that a BRICS Currency could be more valuable than Gold. Not necessarily impossible, but highly unlikely.
Russia’s Deputy Foreign Minister Sergei Ryabkov last month said that the BRICS currency remains under development, but is facing challenges. “I would not say that this idea (BRICS currency) has been shelved,” said Ryabkov. “But this does not mean that this idea has been postponed,” he said. Ryabkov revealed that the bloc aims to provide an update on the currency in less than a year. This date could be the upcoming BRICS summit, where all of the alliance members meet in Russia.