BRICS: Ending Reliance on the U.S. Dollar Mai
Leaders of the BRICS nations will discuss reducing dependency on the U.S. dollar at the ongoing summit in Johannesburg. Reducing reliance on the U.S. dollar is the main agenda item of the BRICS summit, according to Bloomberg. The bloc will discuss ways to minimize USD and maximize the usage of local currencies for international transactions.
The Deputy President of South Africa, Paul Mashatile, said that the summit will start discussions on how to reduce dependence on the U.S. dollar. “Today the world takes notice of this bloc because it’s at the forefront of the global discourse to reduce dependence on the dollar,” he said.
However, he added that BRICS will not compete with the U.S. dollar and the West but is creating a level playing field. “We are not here to compete with the West. We want our space in global business,” he said to business leaders ahead of the summit.
In June, BNP Paribas SA said that the conditions to diminish the U.S. dollar remain more ripe than ever. It added that the dollar would be dethroned even if the process was “a slow, incremental burn.”
“I want to buy from India. Why should I use dollars?” said former Nigerian President Olusegun Obasanjo to a standing ovation. “It’s a payment and settlement system that will allow me to buy whatever I want to buy in India, whatever I want to buy in Brazil, without looking for dollars,” he said.
Therefore, the BRICS alliance is committed to putting local currencies at the forefront to strengthen their native economies. Other developing countries are following suit and could stop using the dollar for global trade. BRICS is an acronym for Brazil, Russia, India, China, and South Africa.