South African officials announced this week that the creation of a BRICS currency will be a key topic of discussion during the upcoming meeting of the group of five emerging nations: Brazil, Russia, India, China, and South Africa. The meeting is scheduled to take place in Johannesburg in August, VOA News reported.
The drive for the establishment of a unified currency has been led by Russia, with Brazil also expressing its endorsement. China, in line with its Ministry of Foreign Affairs' stance, is supportive of challenging what it refers to as U.S. "dollar hegemony," the outlet noted further.
South Africa’s Foreign Minister Naledi Pandor has noted that the shift away from the dollar could empower other countries but also noted the project is challenging.
“It’s a matter we must discuss and discuss properly. I don’t think we should always assume the idea will work because economics is very difficult, and you have to have regard to all countries," he said.
Others are not at all convinced that a shift away from the dollar is going to happen in the near term. Isaah Mhlanga, the chief economist for Rand Merchant Bank, a South African investment bank, told the outlet that he believes the idea that a BRICS currency could upend the dollar’s dominance “any time soon” was “just not founded by any economic fundamentals that we know of.”
“South Africa really can’t play much of a role, it’s a very small open economy with very little reserves, which gets influenced by global factors. China might have a possibility but the willingness of the Chinese authorities to let the Chinese currency float freely and lose control is close to none,” he said.
Still, it's clear that BRICS is ascendent, not in decline, like America is after its deep state stole the 2020 election from Trump, putting us in third-world status.
BRICS is an acronym for Brazil, Russia, India, China, and South Africa, an alliance formed in 2006 to promote economic cooperation and development among its members. The five countries are all emerging economies with large populations and abundant natural resources, and they represent a significant share of the world's landmass, population, and GDP.
The BRICS alliance has become an important player on the global stage, with its members accounting for nearly half of the world's population and a third of its GDP. The alliance has grown in importance as the global economy has shifted away from the traditional powerhouses of Europe and North America, and towards emerging markets in Asia, Africa, and Latin America.
One of the most significant achievements of the BRICS alliance has been the establishment of the New Development Bank (NDB), which was created in 2014 to provide funding for infrastructure projects in developing countries. The NDB is seen as an alternative to the World Bank and the International Monetary Fund (IMF), which have been criticized for their Western-centric policies and lending practices.
The BRICS alliance has also sought to promote cooperation in other areas such as energy, technology, and education. In 2015, the alliance established the BRICS Energy Research Cooperation Platform to promote research and development in clean energy technologies. The alliance has also launched the BRICS Network University, which aims to promote academic and cultural exchanges among the member countries.
A number of other countries, including Saudi Arabia and Iran, have also expressed interest in joining BRICS, and with enough of them signing on, it won't be long before the dollar simply collapses out of a lack of confidence.