BRICS Currency: Aims to End US Dollar Dominance?

Is the creation of a new BRICS currency a real threat to the US dollar\'s global supremacy? Recent comments from a Russian diplomat, Yury Ushakov, confirmed that the formation of a new BRICS currency is important to uproot the US dollar. This statement underscores the growing ambition of the BRICS nations (Brazil, Russia, India, China, and South Africa) to challenge the established financial order.

TEHRAN (Tasnim) – A Russian diplomat said the formation of a new BRICS currency is important to end the supremacy of the US dollar in the international market. This move towards a BRICS currency is fueled by a desire to reduce reliance on the US dollar for international trade and investment. The BRICS alliance increasingly aims to prioritize local currencies for cross-border transactions, aiming to lessen their vulnerability to US monetary policy and geopolitical pressures.

The potential impact of a BRICS currency is significant. It could reshape international trade dynamics, offering alternative payment mechanisms and challenging the dollar\'s reserve currency status. Supporters argue that it would promote greater financial stability and independence for BRICS nations and other developing countries.

However, the path towards a BRICS currency is fraught with challenges. Issues such as differing economic structures, political complexities, and the establishment of a credible and stable currency system need to be addressed. The stability and acceptance of the new currency are crucial for its success.

Interestingly, even as far back as when U.S. President-elect Donald Trump warned the BRICS countries that if they attempt to replace the “mighty U.S. dollar” they would face “100 percent tariffs", the discourse around de-dollarization was already present. This highlights the longstanding tensions surrounding the dollar\'s dominance and the aspirations of nations seeking greater financial autonomy.

The development of a BRICS currency is a complex and evolving process. Its success will depend on the commitment and cooperation of the BRICS nations, as well as its ability to gain acceptance and trust in the global market. Whether it will truly "end" the US dollar\'s reign remains to be seen, but it undoubtedly represents a significant challenge to the current financial landscape and warrants close monitoring.