With the bloc committed to its de-dollarization efforts, the BRICS collective could be set to launch its very own currency exchange platform. Indeed, the Atlantic Council’s GeoEconomics Center released a report pondering the potential for the alliance’s developing payment system.
The think tank noted that its current developments “form the basis for a currency exchange platform,” in the coming years. It would certainly align with its recent motivations. Indeed, the economic collective has sought to increase the use of its own currency. In turn, doing away with the international reliance on the US dollar.
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BRICS Projects Point to Developing Currency Exchange Platform
The Atlantic Council reported earlier today that the US dollar was thriving. It noted that the greenback is still the dominant global reserve currency. Despite BRICS’ attempts at the contrary, its position appears secure. However, it did note that a shift in focus for the alliance could take place.
“The dollar’s role as the primary global reserve currency is secure in the near and medium term,” the report said. Moreover, it noted the asset “continues to dominate foreign reserve holdings, trade invoicing, and currency transactions globally.”
It also noted the BRICS attempts to promote the use of its local currencies. The report stated the bloc has focused on “new cross-border payment systems with the goal of creating a more multipolar financial system.”
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Additionally, those efforts could form the foundation for a project that could massively shift geoeconomic powers. Specifically, the report states that BRICS could be preparing to launch its own currency exchange platform.
“Negotiations around an intra-BRICS payment system are in the early stages,” the report notes. Yet, it references the host of recent trade deals. The report also talks about digital currency projects and currency swap agreements. The last two years have seen many of these discussions come to the forefront.
“These agreements are likely difficult to scale due to regulatory and liquidity issues, but may for the basis for a currency exchange platform over time.” This could be huge for the grouping. It would create a clear way for local currencies of the collective countries to finally ditch the US dollar.