The US dollar has been the center of global power and trade for many decades. It plays a crucial role in international affairs and commerce. However, in recent times, competition and threats to the USD have increased, and trust in this currency is diminishing. Notably, the emergence of BRICS currency could weaken the dominant position of the US dollar by promoting the use of other currencies apart from USD.
The BRICS bloc has been determined to reduce its reliance on the West. Member countries have started using their national currencies in transactions and decreasing their use of the US dollar in international trade. The upcoming BRICS leadership meeting is expected to further strengthen these efforts.
BRICS and its supporting countries hope that the process of de-dollarization will reduce global dependency on the US dollar. This could weaken the USD’s position and have implications for the United States and the Western world as a whole.
The BRICS group represents over one-third of the world’s population, and this number may continue to rise. If the dominance of the US dollar diminishes, the world may witness a new scenario where the Western approach to dealing with USD is no longer smooth as before.
The depreciation of the US dollar, rising inflation, and the rise of BRICS could pave the way for a new global currency. Some countries are actively increasing the use of BRICS currencies, and global reserve banks are showing trust in a currency backed by gold.
Although a complete replacement of the US dollar as the global reserve currency may not happen immediately, the trend of de-dollarization is closely monitored and has significant implications. This poses challenges not only for the US dollar but also for the current structure of global power. BRICS may emerge as a potential competitor to dethrone the US dollar in the future.