BRICS to Boost European Trade: Is the US Dollar in Jeopardy?

Joshua Ramos
Source: Watcher.Guru

The BRICS economic alliance may be poised to target an increase in European trade in what would be yet another hit to the US dollar. Indeed, China has recently expressed increased focus on its own economic growth. With that, it has targeted increased trade relations with European nations that the alliance could benefit from.

China’s President Xi Jinping conducted a meeting with state-owned business leaders and oversees investors Thursday. There, he noted that economic growth and reform were the country’s top priorities. Moreover, he engaged in increased talks with European leaders in order to enhance economic cooperation.

France President Emmanuel Macron China Xi Jinping
Source: (Photo by LUDOVIC MARIN / AFP)

Also Read: BRICS: Fed Governor Raises Concerns Over De-Dollarization

BRICS Bloc Likely to Target Increased Trade With Europe

Over the last several years, the BRICS economic alliance has enjoyed tremendous growth in the geopolitical sector. The bloc has continued to focus on expansion, increasing its size by five nations at its most recent 2024 Summit. Moreover, those efforts will likely continue heading into this year’s iteration of the event.

Additionally, they have firmly committed to de-dollarization initiatives through participating nations. Their focus has been placed on the promotion of local currencies, and establishing increased multipolarity in the geopolitical sector. That could only be set to magnify in the near future, as the BRICS bloc could embrace increased European Trade, dealing a major blow to the US dollar.

Specifically, China has recently discussed its focus on economic growth. A key part of that endeavor has been its focus on improving trade relations with the European Union. That focus is likely to extend to the economic dealings of the BRICS alliance.

brics new development bank ndb
Source: NDB

Also Read: BRICS: Putin Ready to Negotiate a Ceasefire to Halt Ukraine War

If that does come to fruition, it would represent a massive blow to the dollar. The greenback is already nearly extracted from all trade dealigns between China and Russia. Moreover, the former has focused on increased gold accumulation, seeking other asset classes to hold in an effort to diversify the nation’s finances.

Those tactics will undoubtedly come into play within both China and greater BRICS trades with Europe. Conversely, there is no shortage of European nations that have already expressed a willingness to increase trade with the BRICS countries.

France has consistently embraced diplomatic cooperation with China. Moreover, the country’s relations with Serbia and Hungary were both upgraded following a recent visit. Budapest, Belgrade, and Brussels all had positive meetings with China’s President that could see his plan come together in the coming months.