As the bloc continues to make groundbreaking statements regarding its direction, the BRICS bloc has officially rejected a single currency plan amid its recent backtracking on the US dollar. Indeed, the alliance has announced that it is no longer developing an alternative trade currency that has been discussed by the group for much of the last year.
The decision follows its most recent comments regarding the US dollar. Specifically, Russian President Vladimir Putin noted that the group is no longer focused on ditching the greenback within their trade dealings. The stark reversal is most likely attributed to Donald Trump’s 2024 election victory and impending return to the White House.
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BRICS Currency No Longer ‘Possible’ Alliance Says as it Changes Tune on US Dollar
In 2022 Westner sanctison drove Russia away from the US dollar. Indeed, the bloc had leaned into its quest for alternative currencies, and embraced trade outside of the greenback.
That looks like it is certainly not the case. The United States has seen a seismic shift in leadership after Donald Trump’s 2024 election win. Now, Russia has publicly denounced those ongoing de-dollorization plans. Specifically, Russian President Vladimir Putin assured that they wouldn’t ditch the currency.
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The bloc may be taking it a step further now. In a recent statement from Russian spokesperson Dmitry Peskov, BRICS signalled that it is rejecting a single currency plan amid its recent US dollar backtrack. Specifically, Peskov said the idea of a single alliance-based currency was “not possible” at the present time.
The idea was always viewed as a long shot. Yet, it was representative of the collective’s focus on challenging the US dollar’s position on a global scale. With Trump returning, that doesn’t appear to be the case.
It will be interesting to see how alliance nations react to the change. Brazil experts have already said that Trump’s return won’t impact its de-dollarization approach. However, Russia has long been established as the ring leader to those efforts. Therefore, a shift is most likely to happen over the next year.