• The BRICS nations (Brazil, Russia, India, China, and South Africa) have a combined nominal GDP of $16.039 trillion and are considering a new reserve currency.
• Russia’s central bank has taken steps to reduce its dependence on the U.S. dollar by purchasing the Chinese yuan on foreign exchange markets.
• Financial experts such as Robert Kiyosaki have predicted that the U.S. dollar may be „toast“ in the near future.
In light of the recent economic turbulence and the weakening of the U.S. dollar, the BRICS nations (Brazil, Russia, India, China, and South Africa) have been exploring the potential of creating a new reserve currency. This idea was first proposed by Russian president Vladimir Putin at the BRICS Summit in June, and has since been discussed by many international experts.
Russia’s central bank has started to take steps to reduce its dependency on the U.S. dollar, by purchasing the Chinese yuan on foreign exchange markets. This move is a major shift for the country, which has historically relied heavily on the U.S. dollar. Furthermore, the ruble has dropped 16.48% against the U.S. dollar over the last month, indicating that Russia is taking steps to diversify its currency reserves.
The BRICS nations have a combined nominal GDP of $16.039 trillion, making them a formidable economic bloc. If a new reserve currency is adopted, this could have a major impact on the global economy. Financial guru Robert Kiyosaki has predicted that the U.S. dollar may be „toast“ in the near future, and other analysts have also suggested that the world is moving towards a de-dollarization process.
Yaroslav Lissovolik, executive of Sberbank and Russian International Affairs Council (RIAC) member, recently published an opinion article about the potential of a BRICS reserve currency. He said that such a currency could offer the BRICS nations a great opportunity to reduce their dependence on the U.S. dollar, and to open up new paths for economic growth.
The current economic situation is an uncertain one, but the BRICS nations have the potential to create a new reserve currency that could fuel global de-dollarization. This could be a game-changer for the world economy, and it will be interesting to see how this developing situation plays out in the coming months.