Is the U.S. dollar at risk of losing its global value? Major global economic powers came together last week and discussed possibilities in creating a new global currency. The BRICS alliance – Brazil, Russia, India, China and South Africa met and collaborated on developing their own currency.
This initiative can be seen as a strategy to reduce their dependence on the United States and promote shared objectives. A top Russian official says this move aims to boost trade relations between the “friendly nations.”
“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.
However, this shift away from the U.S. dollar brings significant implications for the global financial system – particularly for the Biden administration who could lose even more economic influence and geopolitical power. This new currency could also make it more difficult for the U.S. to enforce sanctions and limit its ability to place economic pressure and influence on other countries.
Global economic power could be a step in the direction of this widely discussed “new world order,” with the United States un-invited, (aside from a few elites at the top).
State Duma Deputy Chairman Alexander Babakov reportedly stressed the importance of nations working towards a new medium for payments, adding that digital payments could be the most promising and viable.
He also said the currency could benefit China and other BRICS members, and not the West.
“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.”
So, how does this affect the United States, long term? Only time will tell.
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