Can the BRICS Currency Reshape the Global Financial Order?

Will the expanded BRICS be able to chisel out a common currency?

The concept of de-dollarization is gaining traction, particularly following the expressed interest of Saudi Arabia and the UAE, along with over 30 other nations, to join the BRICS (Brazil, Russia, India, China, and South Africa) and introduce a new currency within the BRICS framework as an alternative to the US dollar. To address this, the BRICS summit is scheduled to take place from August 22nd to 24th, 2023, in Johannesburg, South Africa. The BRICS bloc has also extended invitations to 67 world leaders from Africa, Latin America, Asia, and the Caribbean.

Key Items on the Agenda:

Beyond the development of economic relations and trade infrastructure, a pressing issue on the summit’s agenda is the expansion of the BRICS group, with multiple countries from Asia, Africa, and Europe expressing interest in joining. Another noteworthy point on the bloc’s agenda, drawing significant media attention, is the drive by BRICS to promote cross-border trade using local currencies instead of the US dollar. There are also reports suggesting that BRICS is considering the launch of a new currency to reduce the dominance of the US dollar in global trade and finance.