In 2001, Jim O’Neill published a paper identifying the potential of an economic bloc centered around Brazil, Russia, India, and China. Now, that same former Goldman Sachs executive has outlined the BRICS nations’ feasible threat to the US dollar.
In a recent interview, O’Neill discussed the prospect of de-dollarization in the BRICS nations. Specifically, he discussed why the BRICS bloc has a viable chance to usurp the undeniable dominance of the greenback. Stating the one major step leading toward the currency’s replacement.
BRICS Bloc Threat to US Dollar is Real
It has been over two decades since Jim O’Neill wrote of the potential available in what he called the BRIC nations. Moreover, that collective has only grown since then, and has spent the last few months targeting the overall dominance of the Western currency.
In a recent interview, the former Goldman Sachs chair outlined how the bloc could threaten the US dollar. Specifically, stating that, although de-dollarization is not new, the BRICS countries have the greatest chance at bringing it to fruition.
“The idea that the dollar will remain king forever, I think, is probably unlikely,” O’Niel told RT’s Going Underground. “This is not the first time that people have talked about the end of the dollar; it happens every other year, if not with the same intensity,” O’Niel added.
Conversely, he discussed what the BRICS countries need to make the de-dollarization efforts a reality. “I do think if China and India could ever strongly agree on things as the two biggest countries in the emerging world, then that would probably hasten the end of the dollar’s dominance,” he remarked.
The BRICS nations already boast a global GDP greater than the G7 countries. Moreover, as nations grow and an alternate currency is developed, the potential is unlimited. O’Neill stated, “The BRICS countries could be at the basis of some new kind of -not only currency- but some kind of competitor to the US financial system.”
Ultimately, O’Neill added the necessity of a new currency. Conclusively, he stated, “In order for the dollar to end, there has to be some alternative.” Subeuqnelty, expansion, and a BRICS currency will be at the forefront of discussions during the upcoming BRICS summit.