The BRICS alliance is looking to throttle the U.S. dollar’s global reserve status by trading in local currencies for cross-border payments. The Shanghai Cooperation Organization (SCO) is also moving in the same direction with an intent to end dependence on the U.S. dollar. Therefore, both the BRICS and the SCO are in the same boat in their quest to uproot the U.S. dollar’s supremacy.
Also Read: BRICS Developing New Payment System To End Reliance on the U.S. Dollar
If BRICS works on a common agenda prioritizing native currencies, the U.S. dollar could be on the path of decline. The alliance is looking to play a major role in ending the dynamics of the geopolitical system dominated by the West. Read here to know the U.S. sectors that will be affected if BRICS and SCO trade in local currencies.
The member countries of the SCO are China, India, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, and Uzbekistan. The trio of China, India, and Russia are part of both the BRICS and the SCO and share similar geopolitical ideas.
Also Read: BRICS: U.S. Dollar Dominance May Be Coming to an End
However, BRICS and SCO have no plans to merge as of yet to challenge the U.S. dollar’s global supremacy. Both alliances have not discussed the prospects and are individual groups looking to solve different issues.
U.S. Dollar To Face Pressure If BRICS and SCO Merge, Explains Analyst
Robinder Sachdev, the President of Imagindia Institute, a New Delhi-based think tank and research center, said that BRICS and SCO should merge to challenge the U.S. dollar’s hegemony. Merging BRICS and SCO into a single organization could add more pressure on the U.S. dollar’s prospects, he said to Russian news outlet Tass. “A single merged organization will be much clearer, stronger and grow into a very meaningful pole,” he said.
Also Read: BRICS: 85% of The World’s Population Ready Ditch U.S. Dollar
“Both BRICS and SCO are initially founded by China and Russia. Many big-picture goals of both organizations are the same. It is necessary for both organizations to have very different roadmap in the future. Otherwise, I have said many times that it is now time to consider merging the SCO and BRICS into a single organization,” he stressed.