It has been revealed that BRICS has the ambition to create a new global currency in order to challenge the US dollar. Check out the latest reports below.

BRICS to create new global currency

The CFO of the BRICS New Development Bank has revealed that the economic coalition of Brazil, Russia, India, China, and South Africa has aspirations to develop a new global currency and challenge the US dollar in the medium to long-term.

Leslie Maasdorp has stated that the BRICS nations are currently focusing on increasing direct trade in their respective national currencies.

However, Maasdorp clarified that BRICS is not yet prepared to introduce a new fiat currency that can compete with the world’s reserve currency.

But he thinks that will change.

“The development of anything alternative [to the US dollar] is more a medium to long term ambition.”

According to Maasdorp, the Chinese Renminbi is far from being a serious contender to challenge the dominance of the dollar.

Furthermore, he points out that the New Development Bank, which aims to aid infrastructure and sustainable development initiatives in developing economies, currently relies solely on USD.

“The New Development Bank has the US dollar as its anchor currency. Our balance sheet is in US dollars. We are firmly embedded in the US dollar hemisphere.”

Representatives from different nations within BRICS have expressed varying opinions regarding the possible development of a shared common currency in the future.

In other news, recent consumer data has revealed that Americans have depleted their savings by an astonishing $1.76 trillion since 2020. The Federal Reserve reports that between 2020 and 2021, Americans accumulated a total savings of $2.3 trillion.

However, as per the latest numbers from the U.S. Department of Commerce and Wells Fargo, shared by MacroEdge chief economist Don Johnson, the current savings balance has reduced significantly to $533 billion.

Additionally, the Federal Reserve Economic Data (FRED) system indicates that the percentage of personal savings as compared to disposable personal income dropped to 4.6% in May of this year.

That’s well below the historical average of 8.9%.

Recent reports reveal a significant increase in the use of credit cards by US citizens. The data released by the Federal Reserve Bank of New York indicates that American consumers owe a staggering $986 billion on their charge cards.

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