As the push to eliminate the dollar continues, the BRICS countries discuss their currencies. In addition, the countries are working on making a new international currency to replace the U.S. dollar before the annual meeting this summer.
Before, it was said that the countries were trying to get more people to use their national currencies. Also, the countries still hope that a BRICS currency deal will be made in 2023.
Emerging BRICS Currency
The most important thing that happened in 2023 was that the BRICS countries became more important. After it was said that the bloc’s GDP (PPP) was higher than that of the G7, attempts to move away from the dollar came quickly. Brazil, Russia, India, China, and South Africa are now well on their way to creating their foreign currency.
Anatoly Aksakov, the head of the State Duma’s Committee on the Financial Market, has said that BRICS currency talks are happening now. After that, the news comes from rumors that these talks shouldn’t take too long. This is supposed to happen sometime this year as part of the deal.
Askakov said the talks are primarily about how the new currency will work with the group. Also, the measures will work against the U.S. dollar’s role as the world’s reserve currency. On the other hand, the new BRICS currency is likely to be backed by gold, though the details still need to be worked out.
The U.S. dollar has been used less so far this year. After that, countries have been moving toward using the Chinese yuan in foreign transactions. On the other hand, a BRICS currency would let the group agree on an option that would be good for everyone.