Speculations are rife that BRICS is working towards the formation of a digital token named R5 currency. The five founding members of the alliance, Brazil, Russia, India, China, and South Africa, will combine their local currencies and make an index where the R5 traders.
The phrase BRICS ‘R5′ comes after their local currencies’ names, including real, ruble, rupee, renminbi, and rand. The index will track the performance of these five local currencies, making it a single entity named R5.
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BRICS R5 Currency: How Will It Affect the US Dollar?
If the R5 currency is launched, BRICS could begin dealing in trade and settlements under the new index. This could prove to be a major game-changer as crude oil could be paid in the R5 and not the US dollar. The White House can no longer sanction other countries and damage their economies.
The BRICS alliance will have full control over what they sell and what they buy in the R5 currency. Even if the US sanctions these countries, the bloc holds nearly 40% of the world’s population. If R5 gains support in the market and if it ends US dollar dependency, the greenback will suffer the most.
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Even the US and European stock markets could be affected if the dollar is not used regularly. Both economies could begin to face deficits, which could affect jobs and lead to inflation. BRICS has drivel to make things true if they put their perspective into a plan through the R5 currency.
However, the R5 currency from has not launched yet and could take years to shape. Until then, the US and the West control the shots of the global economy. However, a financial tilt from the West to the East is around the corner that could change the path of the global economy.