BRICS currency has been a topic of hot debate over the past few months, with many arguing whether its de-dollarization mission will succeed or fail. The BRICS alliance plans on establishing a new currency for its nations to use, which will replace and hopefully overshadow the US Dollar.
However, Bank of America remains adamant that this will be a tough task–de-dollarization– for BRICS. Bank of America Securities says that the global dominance of the US dollar is not in any way under threat, due to there being “no other currency alternatives” available.
The “USD” is “not about to lose its exorbitant privilege” as “no single alternative has appeared,” BofA said in the note authored by Athanasios Vamvakidis, a foreign exchange strategist, and other analysts.
The BRICS Alliance has a summit scheduled for this August, where new members and the new currency will be a trending topic. Multiple nations are already united in the idea of ditching USD. With talks rising though, and multiple other nations opting for new currencies over the US dollar, such as Argentina for the Chinese Yuan, BRICS is truly becoming a threat to the US currency. The August summit will be a massive checkpoint in this debate moving forward.