Following the BRICS expansion efforts, Jim O’Neill, the economist who coined the acronym, has predicted just what may be the key to dethroning the US dollar. Specifically, O’Neill recently discussed the aforementioned expansion in an opinion piece. There, he affirmed the detriment of international reliance on the greenback while assuring that there is one vital thing that could be done to combat it once and for all.
Throughout much of the year, the BRICS bloc has fully committed to its de-dollarization efforts. Indeed, it has used its newfound expansion to continue its trend of international settlements in local currencies. Yet, those efforts may be misguided, as O’Neill has discussed how those changes could occur abundantly.
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Jim O’Neill Calls for Most Vital Aspect of BRICS De-Dollarization
Two decades ago, economist Jim O’Neill first coined the BRICS phrase. Specifically, he did it to place a spotlight on emerging economies. Moreover, he did it to highlight its purpose and how it could evolve beyond the symbolic. Now, he is continuing to question that purpose and discuss its overwhelming potential.
When commenting on the BRICS expansion this year, Jim O’Neill laid out the key to dethroning the US dollar. Specifically, he broke down the economic reality of the bloc and its parallel nature said the G7 through their top-heavy construction.
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Within that piece, O’Neil noted a “big issue” for the bloc in the dominance of the dollar. “It is not especially healthy for the world to be so dependent on the dollar,” O’Neill stated. Thereafter, he discussed how the BRICS bloc could learn from the missed opportunity of the Euro.
O’Neill writes that the Euro could have played a de-dollarization role if member states allowed it to have a global appeal. Therefore, he notes that BRICS must create “significant financial reforms “to achieve de-dollarization. Specifically, O’Neil discussed this as beyond exploration into a BRICS currency. Subsequently, noting that such reform would lead to local currency promotion globally.