We know that BRICS is an association of regional economies with several important countries. Although it was formed with the initials of five countries, many countries have applied for membership and are still trying to become members. Recently, the BRICS alliance is looking to create a new currency to challenge the US dollar in global trade. We know that the US dollar is very influential in the world market. BRICS therefore aims to uproot the dominance of the US dollar by replacing them with soon-to-be-released new currencies. This alliance wants to reduce the dependence on the US dollar and complete commercial transactions through this new currency. The next BRICS summit is scheduled to be held in Russia next year. While five member countries attend the conference every year, 10 countries will be part of the bloc next year. We know that the alliance recently included five more countries namely Saudi Arabia, United Arab Emirates, Egypt, Iran and Ethiopia.
BRICS has plans to create a new currency to rival the US dollar at its next summit. This alliance is moving forward to create a new currency that will transform financial markets. We know that most of the global transactions are done in US dollars. At present it is singularly dominating. If the new currency is indeed created by this alliance, the paradigm shift will force the US and the West to fight to maintain their global dominance as BRICS convinces other developing countries to use their currency, not the dollar.
If a new currency is introduced by this alliance, BRICS will definitely stop using the dollar. And if this is implemented, how many sectors of the United States will suffer. But it is also true that currently BRICS is already working on forming a new currency. Russian economist Sergey Glaziyev has indicated that this will be a major topic of discussion at the next BRICS summit in Russia. If the BRICS member countries agree to launch a new BRICS currency, the US dollar will face a serious challenge.
And so the US dollar may lose its hegemony. The group is fine-tuning their yet-to-be-released currency. This new currency is building a proper payment infrastructure before its launch in international markets. However, a tentative release date for the BRICS currency remains unknown. If this new currency is implemented, the US dollar must compete with it. Because all these member countries are developing economies.
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