BRICS: The Future of Global Currency?

Mayowa DurosinmiDecember 27, 20231 Mins read347

Image Credit: Watcher Guru

The next BRICS summit will be held in October 2024 in the Kazan region of Russia. While five member countries were initially recognized as Brazil, Russia, India, China, and South Africa, 10 nations will be welcome as part of the bloc next year.

The 5 nations that will make BRICS+ an alliance are five other countries being Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia. Numerous countries across the globe have become members of BRICS.

The BRICS alliance is looking to challenge the US dollar in the global market trade. The US dollar has dominated the global world market for centuries, and to see a new force of alliance working to challenge it would most likely pose a resistance power tussle. But with the presence of other major global powers like Russia and China, working in alliance for a common goal of uprooting the US dollar’s supremacy while ensuring the BRICS soon-to-be-released currency aimed at taking over.

BRICS soon-to-be-released currency, under the New Development Bank, aimed at mobilizing resources for infrastructure and sustainable development projects in BRICS and other EMDCs, has, in five years of operation, created an infrastructure backed by BRICS member countries with a sustainability plan to build an economic world power.

The 15th BRICS summit held on August 24, 2023, South Africa as a host member country, having presented more than 46% of the world’s population and around 35% of the world’s current GDP has put the BRICS in such a purchasing power parity to the point that the expansion of BRICS is a force in the Global South that can not be left aside.

For instance, the BRICS have expanded their economic involvement in Africa in recent years. In 2010, the BRICS share of Foreign Direct Investment (FDI) on the African continent was 4.9% of the world total. In 2021, the BRICS share reached 8.8%. And it could go much higher. This would be a potential lifetime opportunity for Africans to get their leadership crisis resolved, knowing what is at stake if the lingering problem is not corrected.

Nonetheless, stakes are high amidst predictable resistance from the West. As BRICS convinces the world to ditch the US dollars for the soon-to-be-released BRICS currency, will the future of currency be dominated by the adoption of BRICS currency? I guess the next few years will determine the future of the Dollar and provide the future of global currency.