The BRICS alliance is looking to send the US dollar packing and usher into a new financial era where local currencies reign supreme. The White House pressing sanctions on emerging economies is what led the alliance to gang up against the USD. Securing their native economies is the first and foremost important choice and they are right to do so.
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However, can BRICS manage to make the US dollar reductant and run all trade and transactions in local currencies? Is their idea foolish or is it grounded in reality? In this article, we will highlight whether a world without the US dollar can survive.
BRICS: Ending Reliance on the US Dollar, a Myth or Reality?
A world without the US dollar is nothing but a myth pushed by the BRICS alliance on developing countries. The BRICS bloc, despite talking about de-dollarization is not open to accepting local currencies of their own member nations.
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For example, India is staying away from using the Chinese yuan for payments as it would send a weak signal to the Modi government. India and China have been at loggerheads on border disputes for six decades and avoid trading in each other’s currencies.
On the other hand, Russia is only accepting the Russian ruble and Chinese yuan, and not other local currencies. Even the Indian rupee is being kept at bay for cross-border transactions despite being a BRICS member. The balance is off the charts as the leaders act friendly during the summit, but get down to dirty politics in their home turf. No other currency is replacing the US dollar despite BRICS pushing the de-dollarization agenda.
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In conclusion, leaders from developing countries are known to talk big and deliver unrealistic promises but deliver nothing. It’s all talk and no action and their only goal is to win the next election. The rest is all a show put up to demonstrate their ideas which will never indeed turn into reality. Therefore, the BRICS alliance’s quest to end the US dollar’s hegemony is only a myth and not a reality.