Although there is no BRICS currency or official launch date, it is still intriguing to consider what the potential benefits would be if such a currency were to launch. Given the current advancements and objectives of the BRICS nations, here are some benefits to think about.
Reduced Reliance on the US Dollar: The primary motivation for a BRICS currency is to reduce reliance on the US dollar. A new currency could provide support for transactions and shield member nations from the brunt of US fiscal policy and sanctions.
Increased impact within member countries: A shared currency would ease intra BRICS trade. A common currency eliminates the hassle of converting to the dollar, and would ease payments, resulting in lower costs, and trade efficiency within the group.
Greater Global Presence: The new currency would be backed by the members of BRICS which still include some of the major energy producers and consumers, providing them greater economic power. A common currency for the group would change the established order of dominance and would enable the bloc to exercise greater control in international relations.
Financial Stability: Speculative backing of the currency by a basket of commodities like gold or oil would offer a more stable and predictable alternative to fiat currencies thus mitigating inflation risks.
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