In a move that could have major variety of currencies for the world economy, the BRICS alliance has announced its intention to abandon the U.S. dollar as the main currency for global trade and use their local currencies instead. This initiative aims to boost their local economies and assert their independence from Western economic influence.
The BRICS nations, which represent more than 42% of the world’s population and about 23% of the global GDP, have been seeking to reduce their reliance on the U.S. dollar for years, as they view it as a tool of American hegemony and a source of instability. The U.S. dollar has been the dominant reserve currency and the medium of exchange for international trade since the Bretton Woods system was established after World War II.
The BRICS alliance has also been expanding its membership and cooperation with other developing countries, especially in Africa, where it sees huge potential for growth and investment.
The upcoming summit in Johannesburg this month will discuss the enlargement of the bloc and the guidelines for new members. The summit will also be an opportunity for BRICS leaders to meet face-to-face or virtually and deliberate on critical issues affecting their regions and the world.
The decision to abandon the U.S. dollar for global trade is a bold and unprecedented step that could have far-reaching effects for the global financial order. It could challenge the dominance of the U.S. dollar and weaken its role as a reserve currency, which could affect its value and purchasing power. It could also create more opportunities for trade and investment among the BRICS nations and other emerging markets, which could boost their economic growth and development.
The BRICS alliance is clearly determined to pursue its vision of a more balanced and multipolar world order, where local currencies play a more prominent role in global trade. Whether this vision will become a reality or not remains to be seen, but one thing is certain: the BRICS nations have made a stand that could shake the global financial landscape.