BRICS Summit Could Change Global Currency Landscape

The BRICS nations — Brazil, Russia, India, China, and South Africa — are gearing up to discuss the creation of a joint currency at their upcoming summit in Johannesburg, South Africa.

Why it matters: A common BRICS currency could further de-dollarization efforts, reducing dependence on the U.S. dollar.

  • The proposal has its critics, but its proponents believe it could help these nations dodge the “dollar hegemony” and bolster their own economic positions.

Next up: The BRICS leaders’ summit on Aug. 22 is the next big event where this could be discussed.

  • Nineteen other countries, including Saudi Arabia and Iran, have shown interest in joining the BRICS bloc, which could broaden the impact of any decision.

A common BRICS currency could sidestep current barriers to escaping dollar dominance.

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