The BRICS countries will begin discussions to launch a new settlement currency for global trade and exports. Brazil’s President Luiz Lula da Silva confirmed that the bloc will soon discuss prospects of a new settlement currency. The new currency will be used for cross-border remittances among member nations and will end reliance on the U.S. dollar. The Brazilian President said that the Finance Ministers of member countries will begin discussions about the settlement currency.
“We have agreed that our finance ministers will discuss this issue over the coming year to see if we can agree on the creation of an accounting currency for exports by the next meeting,” he said.
Therefore, the new BRICS settlement currency could be formed by the next summit in 2024 in Russia. Also, Lula da Silva stressed that the new settlement currency will not go against the U.S. dollar. He added that the creation of a new currency “does not go against the dollar, it is in the interests of Brazil and the real.”
Also Read: BRICS: Total GDP of All 11 Member Countries
BRICS: Launch of a New Currency Is a Threat to the U.S. Dollar
If BRICS begins to settle trade in a new currency, the reliance on the U.S. dollar will automatically come to an end. BRICS is now an 11-member group with leading oil-producing countries at the helm of the bloc. If developing countries start settling oil trade in the yet-to-be-released currency, the U.S. dollar will find it hard to fund its deficit. The West will be impacted as global trade is realigned.
The financial global order could be altered, tilting power from the West to the East. In conclusion, 2024 could make or break the U.S. dollar’s prospects with the launch of a new BRICS currency. Read here to know how many sectors in America could be impacted if BRICS stops trading in the U.S. dollar.