BRICS Nations Developing A New Currency To Challenge The US Dollar

Key Points:

• BRICS countries are exploring the creation of a new currency that could become a game-changer for the global financial system, providing an alternative to the US dollar.
• The currency may be backed by various commodities, including gold and rare-earth elements or soil.

BRICS countries, which are composed of Brazil, Russia, India, China, and South Africa, are reportedly exploring the creation of a new currency.

The State Duma’s Deputy Chairman, Alexander Babakov, revealed that the nations involved may pitch ideas related to the objective during its upcoming summit in South Africa. The currency may be backed by a range of commodities, including gold and rare-earth elements or soil.

According to Babakov, the transition to settlements in national currencies is the first step towards developing a new currency. The next step will be the circulation of a fundamentally new currency. This new currency could potentially become a game-changer for the global financial system, providing an alternative to the US dollar.

Jim O’Neill, a former Chief Economist at Goldman Sachs who coined the acronym BRIC, recently stated that a group of countries should expand and work to counter the dollar’s dominance. His comments come at a time when the US dollar is facing increasing competition from other currencies, and many nations are looking for alternatives to reduce their reliance on the dollar.

The creation of this new currency will be a significant development, and it could shift the balance of power in the global financial system. As the world becomes increasingly multipolar, the rise of new currencies backed by emerging economies like BRICS could provide an alternative to the traditional Western-dominated financial system.

The next BRICS summit is scheduled for August of this year, where the nations involved may pitch their ideas related to the creation of this new currency. It remains to be seen how this will impact the global financial system, but it is clear that BRICS is taking steps to reduce their reliance on the US dollar and create a more equitable and fair financial system.

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