The possibility of using a future BRICS currency as an alternative to the U.S. dollar in international trade has caught the attention of analysts. The weaponization of the dollar has led some countries to consider other options for international trade. Zhou Weidi, deputy director of the Institute of Economics and Business Administration Central China Pedagogical University, has weighed in on the possible implementation of a BRICS currency in fighting unilateral sanctions and the hegemony of the U.S. dollar in international markets. He stated that the benefit of using the dollar in international settlement started to diminish, and the introduction of a BRICS currency bloc could stimulate the development of both those countries and the whole world. However, Zhou notes that the creation of such a currency could take years.
Russia, one of the biggest economies of the BRICS bloc, has already moved to use the Chinese yuan for bilateral settlements to avoid U.S. sanctions. Qiang Xiaoyun, the director of the Center of Russian-Central Asian Studies at the Shanghai Institute for International Studies, believes that using the yuan or the ruble in payments is the most promising way to move away from the Western payment system. The project of issuing a common currency for transactions among the countries of the BRICS bloc began to be considered last year when Russian President Vladimir Putin stated that the initiative was under consideration at the China-held BRICS summit, with the objective of targeting U.S. hegemony.
State Duma Deputy Chairman Alexander Babakov stated that the issuance of such a currency would be debated during the next BRICS summit, which will be held in Durban, South Africa in August, alongside the inclusion of new countries to the bloc. However, the BRICS currency project is still in its initial stages, and the creation of such a currency could take years. The introduction of a BRICS currency bloc will not substitute the U.S. dollar immediately, but it could stimulate the development of both those countries and the whole world.
The rise of the U.S. dollar was significant to spur an era of economic growth after World War II. However, the weaponization of its ubiquitous use has created distrust even in American circles about the future of the currency, causing countries to consider alternatives to its use. The introduction of a BRICS currency bloc, integrated by Brazil, Russia, India, China, and South Africa, could be a viable alternative to the U.S. dollar in international trade. While the BRICS currency project is still in its initial stages, the possibility of its implementation is under scrutiny.
In conclusion, the possible implementation of a BRICS currency could be a viable alternative to the U.S. dollar in international trade. However, the creation of such a currency could take years, and the introduction of a BRICS currency bloc will not substitute the U.S. dollar immediately. The BRICS currency project is still in its initial stages, and the possibility of its implementation is under scrutiny.
