Will BRICS end the supremacy of US Dollar in world order what experts feel Know what the experts think


Johannesburg: For the last almost 80 years, the US dollar has been dominating all the currencies of the world. But developing countries are now tired of Western dominance over global governance and finance management. According to experts, the group of these countries is now engaged in ending the supremacy of the dollar. He says that BRICS can be a means to end the dollar. Something similar appears from the address of Russian President Vladimir Putin. Putin addressed the BRICS summit in Johannesburg via video conferencing. He said the de-dollarization process was “irreversible” and was accelerating, where leaders from Brazil, India, China and South Africa gathered.

questions raised on the dollar
Earlier this year, Brazilian President Luiz Inacio Lula da Silva asked why all countries have to base their trade on the dollar. Before him, a top Russian official had also said that the BRICS group was working on creating its own currency. The call for change to end the supremacy of the dollar is not new, nor is it the first time in BRICS. But experts say that apart from recent geopolitical changes, rising tensions between Russia and China along with the West have brought it to the fore.

Crisis increased after Ukraine attack

When Ukraine was invaded in early 2022, a series of Western sanctions froze nearly half of Russia’s foreign exchange reserves. Major Russian banks also suffered and were removed from SWIFT. It is a messaging network used by banks to facilitate international payments. In the same year, the US banned the export of semiconductor technology to China. Shirley Ji Yu, senior fellow at the London School of Economics, says that as the US, Russian and Iranian sanctions weaponise the dollar, other developing countries are increasingly looking for alternative currencies for trade, investment and reserves. There is a growing desire to develop an alternative to SWIFT.

what is the future of brics currency
Professor Danny Bradlow of the Center for Advancement of Scholarship at the University of Pretoria explained the possible currency options. He said that it is doubtful that many people will want to go back to the gold standard. Also cryptocurrencies are an unlikely option as they are fraught with risk. However, experts are skeptical even on a separate BRICS currency. Yu said that a set of institutions would be needed to create a BRICS currency. Institutional building requires a standard to be followed and core values ​​are also needed. These are very difficult to achieve, though not impossible. Chris Weifer, investment analyst at Macro-Advisory, a strategic firm focusing on Russia and Eurasia, described the idea of ​​a BRICS currency as a ‘non-starter’. Weifer said that even people in various governments know that this is not going to happen, or will not happen for a very long time.

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