The BRICS alliance will launch a new currency to settle global trade and end reliance on the U.S. dollar. The move will create an alternative reserve currency and challenge the dollar’s supremacy. Currently, the U.S. dollar serves as the de facto reserve currency and is widely held by Central Banks around the world and used for international transactions.
If the new BRICS currency were to gain significant traction and acceptance among countries, it could contest the U.S. dollar’s status as the primary reserve currency.
Also Read: What Happens if Saudi Arabia Accepts BRICS Currency?
Will The U.S. Dollar Crash If BRICS Launch New Currency?
Source: schroders.com
The new BRICS currency could lead to a gradual shift in global currency reserves away from the U.S. dollar. The development could potentially reduce the demand for U.S. dollars and weaken its position in international markets.
A decrease in…
