The BRICS nations are working together to create a common currency that will reduce their dependence on the US dollar and challenge its dominance. Brazil, Russia, India, China, and South Africa are collaborating to create a new payment medium that will not be based on the dollar or the euro. The movement gained momentum following the Russia-Ukraine war, and with calls for de-dollarisation, the BRICS nations are seeking to create a new currency to counter American influence.
For many years, the US dollar has been known as the world's most powerful currency, earning it the nickname "the king of currency." The US has exerted significant influence over the global economy, using sanctions to achieve its foreign policy objectives. However, there are countries that are looking to reduce their dominance in global markets, which involves substituting the US dollar with other currencies for trading oil and other commodities.
Supporters of de-dollarisation argue that it could potentially minimize the impact of economic and political changes in the US on their own economies. Countries may reduce their vulnerability to currency fluctuations and interest rate fluctuations, which can enhance economic stability and lower the risk of financial crises.
Despite the powerful status of the US dollar, there are countries that are looking to reduce their dependence on it. With the BRICS nations collaborating to create a new payment medium, it remains to be seen whether the plan will materialize and whether it will truly challenge the dominance of the US dollar. The move is likely to have a significant impact on the global economy, and it will be interesting to see how it develops in the coming years.
