The BRICS alliance is looking to work on an alternative currency to take on the US dollar. The bloc is working out several options to end dependency on the US dollar and promote local currencies for global trade. The alliance is also convincing other developing countries to stop relying on the US dollar and promote local currencies instead.
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. Reports are doing the rounds that BRICS is considering a single unit currency, similar to the Euro, to challenge the US dollar.
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Russia’s Minister of Finance Anton Siluanov said that BRICS members are looking at the possibility of a common unit of account and currency, similar to the Euro. Siluanov said that the currency could work as an alternative to the US dollar, and can be used to denote the cost of some commodities.
“This can be a unit of account for the BRICS member countries. Not a single currency like in the EU (Euro) but an alternative to the dollar. In which the cost of commodity deliveries can be denoted as well as benchmarks for some goods. So as not to depend on the single currency or an issuing center that issues banknotes in a no-one-knows-how manner,” he said.
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BRICS Currency: The Euro Way
The BRICS currency following the Euro’s path is currently only talks and no concrete decision has been made. The bloc of nations will meet at the next summit in October this year and have a common consensus. The upcoming 16th summit will take the alliance in a new direction with possible groundbreaking policies.
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The policies could hamper the West and the US dollar, as they might give prominence to their currency. If the US dollar is used less on the global stage, America’s economy will be the hardest hit this decade.
