EmerioBanque

BRICS New Currency To Challenge US Dollar Dominance In International Trade

The dominance of the US Dollar in international trade is witnessing a significant challenge as developing global economies, such as China and India, step forward to initiate trade in their own currencies. Besides, nations seen as aligned or neutral by the West regarding the ongoing Russia-Ukraine war are coming together to focus on mutual global trade. 


De-dollarization has been a steady hot topic so far in 2023. Furthermore, the financial coalition has explored a possible alternative while utilizing the Chinese yuan and other national currencies for global settlements. Conversely, the forthcoming summit will surely include discussions on currency alternatives.


Now, it seems like the BRICS union will probably introduce a common currency for global trade. Specifically, it has been reported that the development that is set to be a crucial idea at the forthcoming summit taking place in South Africa.

The BRICS (Brazil, Russia, India, China, and South Africa) nations are reportedly exploring the development of a common currency that will be used to trade internationally amongst themselves. 




As the annual summit is set, the BRICS group of nations will discuss the feasibility of launching a common currency for international trade. Subsequently, the group of countries attempts to remove the US dollar’s dominance in global trade. 


A new financial arrangement, seen with a prospective to translate into a common BRICS currency, could be declared as soon as August 2023 at the upcoming BRICS Summit in South Africa.


BRICS To Develop Common Currency For Trade


The rising predominance of the BRICS countries has been an interesting growth over the last year. Additionally, its accurate endeavors at diminishing the US dollar’s position globally have taken hold. Subsequently, creating a currency specific to the financial coalition has dominated discussion in recent weeks. 


The report noted that conversations on the currencies launch would be held, with some in the collective urging caution. However, South Africa’s Foreign Minister believes that the financial alliance should not rush to incorporate an alternative.


“I don’t like preventing BRICS’ leaders’ discussions on the launch of a new currency.” Naledi Pandor, South Africa’s Minister of International Relations and Cooperation, stated, “It is a matter that we must negotiate and discuss properly. I don’t think we ought to continuously expect the thought to work because economics is very challenging, and you must respect all the nations, especially in a circumstance of low development when you rise from crises.”


The BRICS summit will occur on August 22nd, with its greatest leaders meeting in Johannesburg. Moreover, as the alliance represents more than 40% of the world’s population, its vitality cannot be understated.


Furthermore, potential extension is supposed to be talked about as well. Nations have already submitted membership requests to join the system. Thus, a common currency’s improvement becomes a cautious suggestion for the growing group.






Other news

Exchange Rates

Currency Buy Sell
EUR USD 1.06 1.10
EUR GBP 0.86 0.89
EUR CHF 1.02 1.06
EUR AUD 1.72 1.70
EUR JPY 116.08 116.56
EUR MYR 4.50 4.77
EUR SGD 1.53 1.57
EUR HKD 8.27 8.53
EUR CAD 1.54 53.84
EUR DKK 9.75 1.55

Most Recent Blogs View All Blogs

08 Feb

Blockchain's Impact on Trade Finance: Shaping Global Commerce

Trade financing facilitates global commerce but involves antiquated systems reliant on manual paperw...

06 Feb

India's Trade Dynamics Amidst the Red Sea Crisis

As of now, there has been no significant impact on India's exports and imports owing to the crisis i...

31 Jan

Choosing the Right Trade Finance Instrument for Your Business

Understanding Trade FinanceTrade finance facilitates transactions and lowers risks for buyers and se...

Disclaimer

Emerio Banque is an innovative global financial institution incorporated in England and Wales with Legal Entity Identifier 875500DGPPWAFABBK130. Emerio Banque does not offer its products and services to businesses and/or persons registered in the United Kingdom.

No information on this website should be construed as a solicitation, offer, recommendation, and representation of suitability or endorsement of any security, investment or strategy.

Important Notice

Emerio Banque would like to advise its customers to report any suspicions which they may have regarding the identity of any intermediary who promotes products or services offered by us or any intermediary bearing similar names. You should verify with Emerio Banque by calling our Customer Service Number on +44 203 059 7831 or emailing help@emeriobanque.com

Please also be aware of bogus SMS messages and voice message calls or fraudsters who impersonate the staff of Emerio Banque.

We have recently become aware of a number of entities with different names misrepresenting themselves as associates, partners or agents of Emerio Banque.

Please be informed that Emerio Banque is not associated with nor do we have any business connections or dealings with such institutions.

Emerio Banque takes all information regarding suspicious fraudulent activity very seriously. Please immediately inform us at compliance@emeriobanque.com if you suspect or are approached by persons misrepresenting or impersonating Emerio Banque and/or its officials. We will make investigations and will take legal action where necessary.