A top Russian lawmaker says world leaders have officially started working on an agreement to create a new BRICS currency that does not utilize the US dollar.
Chairman of the State Duma Committee on the Financial Market, Anatoly Aksakov, is outlining the efforts of BRICS to create an alternative currency that would circumvent USD.
BRICS is a group of strategically-aligned nations that currently includes Brazil, Russia, India, China, and South Africa.
China leading US in technology race in all but a few fields: New Report
At a conference organized by Russia’s Parliamentary Newspaper, Aksakov said negotiations detailing how the new currency will work are now underway, and an agreement may be hammered out by the end of the year.
The mechanics of the new currency from BRICS have not been finalized. However, it will reportedly be backed by gold and potentially additional precious metals and assets.
Aksakov says American sanctions have gone too far, politicizing the dollar and triggering a movement away from America’s global currency dominance.
“By linking its economy and currency to politics, the US is practically undermining the foundations of its dominance.
I am sure that the share of the dollar will steadily decline in world trade.”
BRICS
BRICS itself appears to be on the cusp of a major expansion. The BRICS countries (Brazil, Russia, India, China, and South Africa) have been exploring the possibility of creating a new currency for their trade transactions, independent of the US dollar. This is partly due to concerns about the stability of the dollar, as well as a desire to reduce their dependence on the US financial system.
A total of 19 additional countries are interested in joining the group, according to South Africa’s BRICS ambassador, Anil Sooklal.
3 replies on “BRICS Negotiate New Currency to Abandon US Dollar”
[…] The BRICS countries are home to some of the world’s fastest-growing economies, with China and India leading the way. They are also rich in natural resources, including oil, gas, coal, and minerals, and have a large and growing middle class. As such, they present significant opportunities for international trade and investment. […]
[…] ALSO READ: BRICS Negotiate New Currency to Abandon US Dollar […]
[…] ALSO READ: BRICS Negotiate New Currency to Abandon US Dollar […]