The number of countries apart from BRICS that are planning to ditch the US dollar for trade and commerce is increasing alarmingly. Developing countries worldwide are looking to use local currencies and sideline the greenback for cross-border transactions. This adds pressure on the USD as it could lose out on the supply and demand mechanism in the currency markets.
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. If more nations end reliance on the currency, the cost of daily essentials could skyrocket in the homeland. The USD stands at the crosshairs of a global change that could dim its lights and send it towards the path of decline.
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BRICS: Venezuela Says 25% of Trade Can Be Conducted Without the US Dollar
Venezuelan Foreign Minister Yvan Gil said that 25% of trade can be conducted without depending on the US dollar. He cited that local currencies can be used for trade among like-minded nations to boost their overall economies. He spoke highly of the BRICS alliance saying that the bloc ushered the world into a new financial era.
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“At least 25% of global trade operations can be conducted without being tied to the dollar which will be a significant step towards greater financial independence of countries subject to sanctions,” said Gil. He noted that the development became possible with BRICS as the rise of a multi-polar world brought changes in trade settlements.
However, despite attempts to join BRICS, Venezuela was denied entry into the bloc. The upcoming summit in July could decide its fate as Brazil chairs the discussions. In conclusion, one thing is clear BRICS is providing confidence to developing countries to ditch the US dollar. Emerging economies find the de-dollarization ideals daring and lucrative that can change the global financial order.
Also Read: BRICS: Top Bank Predicts US Dollar Could Lose Global Status