BRICS Nations Want To Dethrone The Dollar In Epic Financial Showdown
- BRICS alliance to discuss using local currencies for cross-border transactions in the August summit.
- Aim to reduce reliance on the U.S. dollar for global trade and boost local economies.
- Move expected to strengthen intra-bloc trade and challenge Western dominance in finance.
The upcoming BRICS summit in August will see the bloc of five nations discuss the potential usage of their local currencies for cross-border transactions, according to Watcher Guru‘s report.
With a goal to strengthen their respective economies, BRICS aims to reduce reliance on the U.S. dollar in global trade and initiate remittance for imports and exports using their native tender.
Reuters had previously reported that a BRICS currency would not be on the agenda for the summit in South Africa. However, the leaders from Brazil, Russia, India, China, and South Africa remain committed to shifting away from the U.S. dollar and exploring the use of local currencies for trade and settlements.
Anil Sooklal, South Africa’s Ambassador at Large: Asia and BRICS, clarified that there had been no discussions regarding a common BRICS currency. Instead, the focus is on trading and settling in local currencies.
The move is seen as an effort to challenge the Western dominance of global finance, particularly amid Russia’s sanctions-imposed isolation following its actions in Ukraine. Leaders such as Brazil’s President Luiz Inacio Lula da Silva and Russian Foreign Minister Sergei Lavrov have supported the idea of a common currency to strengthen the bloc’s position in the global financial order.
In an exclusive interview with Watcher Guru, Ambassador Anil Sooklal confirmed that the BRICS alliance will indeed discuss matters related to using native currencies. This demonstrates BRICS’ determination to sideline the U.S. dollar and establish their local currencies as major players in the global financial system.
The discussions at the summit will revolve around deepening the use of local currencies for international transactions, enabling BRICS nations to conduct trade without relying on the U.S. dollar. This strategic move is expected to invigorate local economies and bolster their native currencies in the foreign exchange markets.
By avoiding the U.S. dollar for intra-bloc trade, businesses within BRICS countries are likely to experience increased efficiency, faster transactions, and reduced costs. Furthermore, the alliance’s decision to utilize local currencies could extend a financial lifeline to other developing nations, helping them strengthen their economies.
It is widely believed that the joint efforts by BRICS nations to escape the pressure of U.S. sanctions on developing countries played a significant role in motivating this shift. As these economies grow stronger and move away from reliance on the greenback, the balance of global financial power could potentially tilt towards the East, potentially posing economic challenges for the U.S. and other Western countries.
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