BRICS countries basically include Brazil, Russia, India, China and South Africa.
Some other countries have also been included in it. Now all these countries together are thinking about a new currency.
The issue is likely to be discussed at the BRICS summit to be held in Kazan, Russia from October 22 to 24.
If the new currency is agreed upon, then its member countries will make mutual deals in this new currency in exchange for the US dollar. This could prove to be a big blow to America and the American currency.
The current international financial system is dominated by the US dollar. Currency accounts for about 90 percent of trade. Almost 100 percent of oil trade is done in US dollars.
China can also support India and Russia in this campaign against America. The biggest reason for this is the US trade war with China.
If the BRICS nations establish a new reserve currency, it would likely impact the US dollar significantly. This will have implications for the United States and the global economies.
It is still too early to predict when a BRICS currency will be issued, but now is a good time to look at the potential of a BRICS currency and its potential implications for investors.
Why do BRICS countries want to create a new currency?
The BRICS countries have many reasons for wanting to establish a new currency. Recent global financial challenges and aggressive US foreign policies have prompted BRICS countries to explore the possibility.
They want to better serve their own economic interests while reducing global dependence on the US dollar and euro.
When will the BRICS currency be issued?
There is no confirmed launch date yet, but the countries’ leaders have discussed the possibility in detail.
During the 14th BRICS summit to be held in mid-2022, Russian President Vladimir Putin said that the BRICS countries are planning to issue a new global reserve currency.
In April 2023, Brazilian President Luiz Inácio Lula da Silva showed support for a BRICS currency, saying, “Why should an institution like the BRICS Bank have a currency to finance trade relations between Brazil and China, between Brazil and all the other BRICS countries?” Can’t it happen? “Who decided that the dollar would be the currency after gold parity ended?”
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