How Long Will The Dollar Last as The World’s Default Currency? The BRICS Nations Are Gathering in South Africa This August with It on The Agenda
The comments below are an edited and abridged synopsis of an article by Mihaela Papa and The Conversation
Could a new currency be set to challenge the dominance of the US dollar? Perhaps, but that may not be the point.
In August 2023, South Africa will host the leaders of Brazil, Russia, India, China and South Africa—a group of nations known as BRICS. Among the items on the agenda is the creation of a new joint BRICS currency.
The BRICS summit comes as countries across the world are confronting a changing geopolitical landscape that is challenging the traditional dominance of the West. And while the BRICS countries have been seeking to reduce their reliance on the dollar for over a decade, Western sanctions on Russia after its invasion of Ukraine have accelerated the process.
Meanwhile, rising interest rates and the debt-ceiling crisis in the US have raised concerns among other countries about their dollar-denominated debt and the demise of the dollar should the world’s leading economy ever default.
A new BRICS currency faces some hurdles before becoming a reality. But the currency discussions show that the BRICS countries are seeking to discover and develop new ideas about how to shake up international affairs and effectively coordinate policies around these ideas.
Up for discussion: De-dollarization momentum; currency ambitions; and from BRICS vision to reality.