BRICS Countries To Establish A Common Currency

On January 25, Russian Foreign Minister Sergei Lavrov said that BRICS countries, that are Brazil, Russia, India, China, and South Africa, will discuss creating a common currency in August.

 Sergei insinuated the incompetence of the dollar in the current international monetary and financial system, as sanctions weaponize the U.S. dollar but aren’t working. The continual use of sanctions has weakened the dollar’s global position, downgraded from predominately a standard currency unit to a regional currency. There is growing evidence that countries have shifted away from the dollar.

 At a summit in Buenos Aires this week, Brazil and Argentina have announced that the two regions will focus on how a common currency could boost regional trade and reduce reliance on the U.S. dollar. In addition, the Chinese Communist Party (CCP) has founded a formal digital currency, and begun to promote the digital yuan globally. All of this could pose a significant threat to the U.S. dollar.

 However, analysts believe that although the BRICS countries are planning a common currency to counteract the US dollar, people will not trust their governments or banks when they are impacted by the Covid, also known as the CCP virus vaccine disaster. So whether it is the US dollar, or another new common currency, will eventually become meaningless, and their efforts will be in vain.