- BRICS countries are seeking to establish their own financial institutions and currency, moving away from the US dollar’s global dominance.
- Russian President Vladimir Putin emphasizes the creation of a “fair world order” and a new BRICS currency at the upcoming 16th BRICS summit in 2024.
BRICS: Forging a New Path in Global Finance
The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, is making strategic moves to end the long-standing financial world order dominated by the United States and its Western allies. This shift represents a significant transformation in international financial relations, with these developing countries keen on establishing their own financial structures independent of the US dollar.
Challenging American Hegemony
In a recent statement, Russian President Vladimir Putin criticized the current “rules-based world order” as being overly influenced by the US and the West. He declared that this domination is not sustainable and predicted that the upcoming 16th BRICS summit, scheduled for 2024 in Russia’s Kazan region, will be a catalyst for positive change within the alliance.
Putin’s comments highlight a growing sentiment among BRICS nations towards creating a “fair world order.” This new order aims to reduce the longstanding hegemony of the United States in global financial affairs. The Russian leader pointed out the absence of fixed rules in the current system, suggesting that they are frequently altered to suit the political and transient interests of dominant countries.
The 16th BRICS Summit: A Pivotal Moment
The upcoming summit is poised to demonstrate the collective strength of BRICS countries. Putin emphasized that these nations aspire to live by established global rules, including those enshrined in cornerstone documents like the United Nations Charter, rather than by the fluctuating standards set by a few dominant powers.
Towards a New BRICS Currency
An ambitious component of BRICS’ strategy is the development of a new currency to challenge the US dollar in global trade. This move could have far-reaching implications for various sectors in the US and globally, especially if BRICS countries cease using the US dollar in their transactions. The implementation of a BRICS currency would signify a major shift in international trade dynamics, potentially altering the current global financial landscape.
As the 16th BRICS summit approaches, the world is watching closely. The proposed changes by BRICS could redefine the global economic order, marking a departure from a system long influenced by US dollar dominance and paving the way for a more diversified and balanced global financial ecosystem.