Recent reports suggest that BRICS is considering a potential replacement for the US dollar. The economic alliance is allegedly in the process of developing a new currency that aims to surpass the US dollar’s dominance.
New trending currency backed by gold
Sources indicate that the new trading currency will be backed by gold, a standard that was once used to define the US dollar over a century ago. For more information on this developing story, refer to the latest reports provided below.
The currency is set to be unveiled in August during the 15th BRICS Summit in South Africa.
“BRICS is set to introduce a new currency backed by gold, in contrast to the credit-backed US dollar, with the decision coming a month ahead of the bloc’s summit in Johannesburg. With the growing initiative, more and more countries are lining up to join the group.”
Russia’s embassy in Kenya has sent out a viral tweet touting the development.
“The BRICS countries are planning to introduce a new trading currency, which will be backed by gold. More and more counties recently express a desire to join BRICS.”
Recently, Leslie Maasdorp, the CFO of the BRICS New Development Bank, stated that the economic coalition has aspirations in the medium to long-term of creating a new global currency to challenge the dominance of the US dollar.
However, Maasdorp clarified that BRICS is not yet ready to establish a currency that would rival the US dollar.
BRICS in the news
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.
