Is the US Dollar's dominance facing a challenge? Iran says a gold-backed BRICS currency could be the catalyst. The recent claim by an Iranian official that a gold-backed BRICS currency would weaken the dominance of the US dollar in global finance resonates like a clarion call to the international community. This isn't just speculation; the BRICS nations are actively exploring alternatives to the USD, potentially leading to a decline in demand, or what's known as significant impact on the US dollar.

The BRICS Cross-Border Payment Initiative (BCBPI) is already in motion, aiming to bypass the dollar by using national currencies instead. Russia's finance ministry and central bank are actively involved. But the real game-changer could be a gold-backed BRICS currency.

“The BRICS’s introduction of a gold-backed currency, which is supported by 41 countries with large and influential economies, will weaken the dollar and the euro,” some analysts predict. The 'BRICS Plus’ (expanded to include Egypt, Ethiopia, Iran, and the United Arab Emirates) are expressing an intent to dump the U.S. dollar in their “bilateral transactions” and aim for a more independent financial future.

Should the BRICS nations establish a new reserve currency, it would likely significantly impact the US dollar. While the exact consequences are debated, the trend suggests a move away from dollar dependency and a potential shift in global financial power. The future of the dollar hangs in the balance as the BRICS nations explore their options.