BRICS Currency to be Released

For the past 12 months, the BRICS alliance has been working on launching its own currency. Russia and Iran confirmed they are collaborating on a currency project for the BRICS. The alliance is expected to launch the currency this year. The release of which could cause radical changes in the global economy.

The BRICS alliance is working to create a multipolar world. They want to dismantle Western, especially American, dominance. It is designed to be used between alliance members at first before going totally global. They have already created the BRICS Pay system.

BRICS PAY enables digital payments between the different countries in BRICS PLUS format. It will allow businesses and consumers to securely and seamlessly make and receive payments in their local currency. The goal is to provide an alternative to the Western-based SWIFT payments system. ¹

Analysts believe the BRICS Summit in October 2024 will be the moment the new BRICS currency will be unveiled. One of the major goals of the BRICS currency is to reduce dependence on the US dollar. They believe diversifying the global economy will benefit their nations.

As it is adopted by economic pillars like China and Saudi Arabia, the currency will become more widely used in international trade and in reserves. As more countries accept it, the more powerful BRICS members will become in the global economy. In a zero-sum world, that means the dollar will be forced to retreat.

Dumping the Dollar

Central banks may already see the writing on the wall. They have been diversifying their reserves with gold while shedding dollars at a furious pace. Faith is the greenback is being shaken by inflation, global conflicts, and runaway US debt. The central bank support for de-dollarization is adding pressure to a fragile American economy.

BRICS member China is on a dollar dumping spree. The latest report from Bloomberg shows that BRICS member China has dumped a substantial amount of US treasuries and agency bonds worth a staggering $74 billion in seven months. And they have been buying gold for 18 straight months. The People’s Bank of China published a report showing that the country holds 2,250 tons of gold in 2024. ²

The de-dollarization movement isn’t limited to the BRICS. Ten ASEAN countries are looking to stop using the US dollar for trade. According to the World Bank, the combined GDP of ASEAN nations currently stands at around $4 trillion. The move aims to strengthen their native economies and protect against adverse US policies, like sanctions and tariffs.

BRICS Summit Goals

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BRICS summit in October 2024 is looking to expand membership as well as launch a new currency. There is a focus on strategic and resource rich nations. The BRICS added four new members at the beginning of the year. Reports say that dozens of countries from Africa, Asia, South America, the Middle East and even Europe are eager to join. Part of joining the BRICS means adopting the alliance’s mission to replace the US dollar. If all goes according to plan, more than half the planet could be dumping the dollar for a new global currency by 2025.

IMF Warning

The International Monetary Fund (IMF) confirmed that the US dollar is in jeopardy against BRICS nations and other local currencies. They are now conducting business based on their geopolitical alliances with other countries. The threat from BRICS and other local currencies against the US dollar is real and should be taken seriously, acknowledged the IMF.

“Countries (BRICS) are reassessing their trading partners based on their economic and security concerns,” said the IMF. “Foreign investment flows are also being redirected according to geopolitical alliances. Some countries are reevaluating their heavy dependence on the dollar in their international transactions and reserves,” they said.⁴

Conclusion

Many new countries that joined BRICS this year are oil-producing and exporting nations. The alliance is waiting for Saudi Arabia to join the bloc and change the dynamics in the global oil sector. If the BRICS capture the oil sector and settle trade in local currencies, or their own new currency, the US dollar could decline.

This October may be a major turning point for the US Dollar. Close to a century of dominance could come to an end as an alliance of non-Western nations embrace a new currency. The consequences for the end of dollar dominance could be catastrophic. The value of the dollar could plummet, along with securities denominated it, like stocks and bonds.

Gold is a likely beneficiary of this currency shift. Demand for the yellow metals will increase as central banks move away from the dollar and new safe haven assets are sought. Now is the time to learn how physical precious metals can benefit your portfolio. A Gold IRA can protect your retirement savings from dollar collapse. Contact American Hartford Gold today at 800-462-0071 to learn more.

Notes:
1. https://www.brics-pay.com/
2. https://watcher.guru/news/brics-china-dumps-74-billion-worth-us-treasuries-in-7-months
3. https://www.visualcapitalist.com/visualizing-the-brics-expansion-in-4-charts/#google_vignette
4. https://watcher.guru/news/brics-imf-confirms-us-dollar-is-in-jeopardy