BRICS Leaders Discuss De-dollarization for International Trade

BRICS Leaders Discuss De-Dollarization and Increasing Trade in Local Currencies

Leaders from BRICS nations are meeting in South Africa to discuss reducing the dollar’s role in international trade and increasing trade in their own currencies. The goal is not to criticize the West, but rather to fund developments in BRICS countries with local money.

BRICS leaders want to reduce the dollar’s role in international trade
They aim to increase trade in their own currencies
Discussions have been held on adopting a common currency for international trade
China and Brazil have already conducted trade in their own currencies
India and Malaysia have agreed to settle trade in the Indian rupee

Despite these discussions, BRICS leaders don’t expect the dollar’s role to diminish in the near future. The dollar’s dominance is attributed to its stable value, the strength of the US economy, and the country’s geopolitical power.

The dollar became the standard for international exchange rates in 1944
The Bretton Woods Agreement made the dollar the world’s gold-backed reserve currency
President Nixon ended the dollar’s gold backing in 1971
BNP Paribas SA believes the conditions are right for the slow demise of the US dollar
A recent poll shows that only 36% of US adults support President Joe Biden’s economic leadership

Hot Take: The BRICS summit is an important platform for discussing the reduction of the dollar’s role in international trade and increasing trade in local currencies. While the dollar’s dominance may persist for now, the discussions and actions of BRICS leaders indicate a desire for greater economic independence and a shift away from relying on the US dollar.