What is BRICS Currency? The following is the explanation and urgency

Bittime - At the BRICS Summit which was held in Kazan, Russia, 22 - 24 October, one of the agendas was to formulate a plan to issue BRICS currency.

BRICS countries, both already members and in the pipeline, have agreed to provide global payment alternatives US dollar, namely with the BRICS currency.

Get Acquainted with BRICS Currency

BRICS currency is a common currency concept proposed by the BRICS countries (Brazil, Russia, India, China and South Africa) to facilitate trade and reduce dependence on the US dollar. 

Efforts to launch the BRICS currency are considered important for countries that are vulnerable to fluctuations in the dollar exchange rate or economic sanctions from the US. 

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Pursuing Trading System Stability with BRICS Currencies

Russia, which has long faced major economic sanctions from Western countries, has an interest in finding alternatives so that its economic stability does not depend on the dollar. 

China is no different, they want to strengthen their economic influence in the world, especially in strategic competition with the US, so that the BRICS currency can support its goal of giving more prominence to the yuan in international trade.

Meanwhile, India and South Africa, although not directly affected by sanctions, have a desire to strengthen their economic independence. 

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India, a fast-growing economy, wants to reduce high transaction costs in dollar-driven global trade. 

On the other hand, Brazil faces economic uncertainty as dollar volatility could impact its commodity markets. 

Through the BRICS currency, these countries hope to establish a more stable and fair trading system, while protecting their economies from excessive external influences.

The Urgency of the BRICS Currency for the Global Economy

BRICS currencies are important in global economic discussions because they have the potential to diversify international financial flows that currently rely heavily on the US dollar. 

The urgency of the BRICS currency is closely related to the need for stability of the global financial system which is increasingly vulnerable to fluctuations in the dollar and US monetary policy. 

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When the US dollar strengthens or weakens significantly, the impact can spread to many countries, especially developing countries that have debt in dollars or depend on commodity exports.

Through the BRICS currency, member countries can trade commodities and products without having to convert to dollars first, reducing the risk of exchange rate volatility and economic dependence on US monetary policy. 

The Spearhead of the De-dollarization Trend

The BRICS currency with all its projections is automatically becoming the spearhead for global de-dollarization.

The presence of the BRICS currency is considered to be able to provide a new balance in international trade, support a more stable and sustainable economy in the future, and strengthen the financial independence of developing countries.

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