The BRICS group, which consists of Brazil, Russia, India, China, and South Africa, is developing a single currency in an effort to do away with the US dollar and challenge American dominance.
For many years, the US dollar has served as the standard for international trade. The creation of a new currency, however, has been discussed recently in an effort to replace the dollar and challenge American hegemony. Mechanisms for trading rubles and rupees have been established by Russia and India. Trade in local currencies has begun between China and Brazil. China and Brazil have inked a deal to trade in each other’s currencies. The two BRICS members will be able to carry out their significant trade and financial activities directly thanks to the agreement, exchanging RMB Yuan for Brazilian Real and vice versa.
Pavel Knyazev, the Russian ambassador to the BRICS, stated last week that BRICS is working on a reserve currency that will be based on a basket of the currencies of the five-nation bloc: Brazilian Real, Russian Ruble, Indian Rupee, Chinese RMB Yuan and South Africa’s Rand. The bloc is also working on establishing a joint financial infrastructure that will enable a reserve currency to be created and facilitated as well as a joint payment network to reduce dependence on western financial systems. Currently US dollar dominates in this field, the BRICS nation are trying to out run dollar in the future. Grate things take time we have to wait for this change and will be able to see that our nation becoming the standard of international trade.
