BRICS Nations Dumping Dollar As New World Currency Nears

Wednesday, April 12, 2023 | Tag Cloud Tags: ,

By Stefan J. Bos, Chief International Correspondent Worthy News

MOSCOW/BEIJING/WASHINGTON (Worthy News) – The U.S. dollar was rapidly losing its status as the world’s reserve currency Tuesday after five leading emerging economies, Brazil, Russia, India, China and South Africa (BRICS), agreed to work on a new global currency, Worthy News monitored.

The BRICS group move is part of a broader de-dollarization move amid governments complaining that the United States has “abused” the dollar to push its will on the world.

With East-West tensions mounting over issues such as Russia’s invasion of Ukraine, China’s military threats to Taiwan, and Iran’s nuclear program, Moscow and Beijing agreed to dump the dollar in bilateral trade.

Alexander Babakov, Russia’s influential deputy chairman of the lower house of parliament, the State Duma, encouraged BRICS to create a new common currency, Worthy News learned.

The issue was due to be discussed during BRICS’ upcoming August summit in South Africa. “The transition to settlements in national currencies is the first step,” Babakov said in published remarks.

“The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the nearest future. I think that at the BRICS [leaders’ summit], the readiness to realize this project will be announced, such works are underway,” Babakov added.


Babakov clarified that a new currency is a way to push back against the perceived world domination of the U.S. and its money.

Experts say if confirmed, the move could be a “game changer” in financial markets and world politics. Professor John Quelch, from the Miami Herbert Business School at the University of Miami, understood BRICS complaints about the dollar.

In published remarks, he said that BRICS wondered, “Why should our macroeconomic policies and exchange rates be at the mercy of U.S. Dollar Federal Reserve decision-making?”

“The Chinese have long aspired to develop a digital yuan as an alternative trading currency, but they haven’t made a tremendous amount of progress,” Quelch told Israeli media.

He said he realized that China has “to prove themselves first before others will line up” but warned: “The substantial increase in U.S. interest rates in the last six months has really brought home emerging economies.”

While a new currency would initially “primarily be used for intra-trade among the five nations” of BRICS, it could be “potentially expanded out to other nations,” he noted.


The BRICS initiative comes just weeks after Russian President Vladimir Putin said Russia would start using China’s yuan currency in international transactions. His Chinese counterpart Xi Jinping noted in Moscow that China and Russia were “driving” global change that “has not happened in 100 years.”

Saudi Arabia, the world’s largest petroleum exporter, was also in talks with Beijing to use the yuan for global trade, Worthy News established.

Xi told Gulf Arab leaders recently that China would work to buy oil and natural gas from Saudi Arabia and others in yuan.

A new BRICS currency, which could be the yuan or a separate (digital) currency, would improve trade relations and foster economic growth, supporters of the initiative say.

A reliable and trustworthy alternative to the current dollar system could attract investments to BRICS, the member nations, the enthusiasts claim.

While any BRICS currency will still has to prove to be a reliable alternative, its introduction will inevitably impact world financial markets.

Analysts say a redistribution of global currency reserves will impact the demand for significant currencies like the U.S. dollar, euro, and yen.

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