Following the highly anticipated 2024 Summit that took place in October, the BRICS alliance has said that the US dollar has signed its own ‘death warrant’ as a global reserve currency. Indeed, one alliance official recently discussed the currency and its deteriorating standing on a global scale.
The bloc has sought to continue challenging the status of the greenback while noting its efforts to lessen its own value. For decades, the currency has propped up the entire international economy. However, the BRICS bloc is looking to bring forth a shift in the global status quo that would change that very reality.
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US Dollar Days as Global Reserve Currency are Numbered, BRICS Warns
Since the 2022 invasion of Ukraine, the West has stood opposed to Russia in a myriad of ways. One of its most important was the imposing of sanctions to limit its financial resources. That fact has set off a series of unintended reactions that may be poised to completely shift global economics.
In response, the BRICS bloc and the global south have sought to combat an international finance system that has proved too easily weaponized. Moreover, that has been echoed by several countries that have embraced a similar tact. Altogether, it proves that the current system has faced increased challenges in recent years.
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According to BRICS officials and Russian Foreign Minister Sergey Lavrov, the US dollar has signed its own ‘death warrant.” Moreover, Lavrov notes that the Western currency was once viewed as a “global good” and is now used as “a tool for punishing dissenters.”
The point of the statement is the lessening trust that the dollar has found globally. With that deteriorating faith a byproduct of weaponization, Lavrov notes that the West is to blame for the falling dollar. To this point, BRICS does appear to be making headway in its de-dollarization.
The bloc has continued to embrace trades in local currencies. Moreover, they have worked to develop their own payment infrastructures. These projects should only encourage financial autonomy. Moreover, they should be clear threats to Western hegemony and US dollar dominance.