The world’s major economic powers are moving away from the US dollar and working towards creating a new global currency. The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, is said to be collaborating on developing their own currency. This initiative is seen as a strategy for promoting shared objectives among the BRICS nations and reducing dependence on the United States.
According to a top Russian official, this will boost trade relations between “friendly nations.” With the ongoing Russia-Ukraine war, there was as an opportunity for Moscow to explore more Indian markets and vice-versa with an aim of promoting a “common currency.”
“New Delhi, Beijing and Moscow are the nations that now institute a multipolar world that is endorsed by the majority of governments,” the Russian official said.
State Duma Deputy Chairman Alexander Babakov said “Its composition should be based on inducting new monetary ties established on a strategy that does not defend the U.S.’s dollar or euro, but rather forms a new currency competent of benefiting our shared objectives.”
BRICS poses a great threat to Biden and America. Brazil, Russia, India, China, and South Africa, create a population of 3.1 billion people (40% of the world’s population) and a combined nominal GDP of $40 trillion (over 20% of the world’s GDP). China is the largest member in terms of population, nominal GDP, and export value, positioning it as the de facto leader of the group. The first BRICS summit took place in Russia in 2009 and is now an annual gathering.