BRICS is working on the formation of a new currency in the global markets to challenge the US dollar’s supremacy. The alliance aims to uproot the US dollar from the world’s reserve and replace it with the new BRICS currency. The battle to dominate the financial sector kick-started after the White House pressed sanctions on Russia and other developing countries.
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Nations around the world fear their economies will be affected by sanctions and now want to end dependency on the US dollar. A handful of countries in Asia, Africa, and Latin America are considering cutting ties with the US dollar. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
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BRICS Currency is Progressing, Confirms South African Ambassador
South African Ambassador to China Siyabonga Cyprian Cwele confirmed in an interview that the BRICS currency is progressing. “The BRICS are advancing the progress of its common currency,” he said to Global Times. He added that the alliance is “actively promoting the use of local currencies from member states to reduce the risks of solely relying on the US dollar”.
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Therefore, even before the launch of the new BRICS currency, the bloc is promoting local currencies of its members to halt the prospects of the US dollar. The Ambassador revealed that a task force of member states formed by the financial ministers will meet in May to discuss the currency.
Cwele stressed that local currencies will be traded heavily among member nations until the BRICS currency is launched. More details about the soon-to-be-released BRICS currency could be revealed in the upcoming summit.
The 16th BRICS summit is scheduled to take place in October 2024 in the Kazan region of Russia. For the first time, nine member countries will be a part of the summit due to the expansion.