Reducing dependence on the dollar: this has been the leitmotif of the BRICS countries in recent months. The group, which wishes to develop its own currency, should also see its numbers grow: more than 40 countries would be interested in joining it. What does this bode for the future of the dollar?
The BRICS, a figurehead of dedollarization
Anil Sookal, an ambassador for the BRICS group, confirmed this growing interest from other world economies. As a reminder, the BRICS group originally brought together Brazil, Russia, India, China and South Africa. Earlier this month, Iran officially joined the ranks of this grouping, and he is not the only country to have been interested.
Other economies have thus expressed their desire to join the BRICS. According to Anil Sookal, 22 countries would have made a formal request for membership, and about twenty others would have confirmed that they wanted to join the group. In total, the BRICS could eventually bring together around fifty countries.
We do not know the exact list, but the ambassador confirmed with IOL media that Indonesia, Argentina, Egypt and the United Arab Emirates expressed their interest.
👉 To go further – End of dollar hegemony: what are the risks and opportunities?
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A future common currency for the BRICS countries?
The BRICS countries are considered a figurehead of dedollarization, in particular because they have confirmed a common currency project, which aims to shed the influence of the USD. The group’s next gathering, next August, should make it possible to continue to strengthen economic ties between the countries, according to Anil Sookal:
“We will continue to discuss the strengthening of interactions and exchanges in local currencies. Countries must have more flexibility and be less dependent on the dollar.»
As the representative of the group points out, the countries in question, long considered as “emerging”, weigh more and more heavily on the international scene. Among the ten countries with the largest monetary reserves, 4 are part of the BRICS. Hence a new polarization of the world, again according to Anil Sookal:
“The major global economies come from the developing world. […] The BRICS represent the world of the future.»
These developments are of course monitored with particular attention by the United States, who argue that a world without dollar dominance is an economically unbalanced world. But the dedollarization process is well and truly on track, and recent debates around US debt do nothing to solidify the position of the world’s largest economy.
The future of the dollar is therefore in question, and it is likely that the coming years will lead to a marked reduction in its influence, which had not been questioned since the end of the Second World War.
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Source: IOL
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Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
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