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The long-term monetary goals of the BRICS bloc comprising Brazil, Russia, India, China, and South Africa, with new members such as Egypt, Iran, Ethiopia, and the UAE The BRICS Cross-Border Payment Initiative (BCBPI) will use national currencies, instead of the US dollar. Russia's finance ministry and central bank released a In parallel, the bloc’s significant role in global commodity production as well as strategic investments in infrastructure, energy, urbanisation and value-added manufacturing Given the recent expansion of the “BRICs” countries to include five new members, will the US dollar remain the world’s reserve currency? Franklin Templeton

BRICS Target Yet Another Sector to Eliminate the US Dollar: What You Need to Know

The BRICS nations are intensifying their efforts to reduce reliance on the US dollar, targeting yet another sector in their de-dollarization strategy. The long-term monetary goals of the BRICS bloc comprising Brazil, Russia, India, China, and South Africa, with new members such as Egypt, Iran, Ethiopia, and the UAE, are driving this shift away from the greenback.

BRICS Cross-Border Payment Initiative Gains Momentum

A key component of this strategy is the BRICS Cross-Border Payment Initiative (BCBPI). This initiative aims to facilitate trade and investment between member countries using national currencies, instead of the US dollar. Russia's finance ministry and central bank released a plan further detailing this ambitious initiative, paving the way for more efficient and independent financial transactions.

Beyond Payments: BRICS' Broader Economic Influence

In parallel, the bloc’s significant role in global commodity production as well as strategic investments in infrastructure, energy, urbanisation and value-added manufacturing strengthens their ability to challenge the US dollar's dominance. This diversified economic power allows BRICS nations to negotiate trade agreements and establish financial partnerships that bypass traditional dollar-denominated channels.

Will the US Dollar Remain the World's Reserve Currency?

Given the recent expansion of the “BRICs” countries to include five new members, the question on everyone's mind is: will the US dollar remain the world’s reserve currency? Franklin Templeton analysts and other financial experts are closely monitoring these developments, assessing the potential impact on global markets and the future of international finance. The increasing adoption of alternative currencies within the BRICS sphere poses a significant challenge to the dollar's long-held status. Stay informed about the latest developments in the ongoing de-dollarization efforts and their implications for the global economy.

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