The plan for an asset-backed currency is moving from speculation to reality.
- Alexey Mozhin, Russia’s executive director at the IMF, suggests BRICS is preparing for an alternative currency if the dollar and international monetary system collapse.
- The proposed currency would be based on a basket of the national currencies of BRICS member countries: the Chinese yuan, Indian rupee, Russian ruble, Brazilian real, and South African rand.
- Discussions are underway about turning this BRICS accounting unit into a real currency, backed by exchange goods (assets), in preparation for a dollar collapse.
- BRICS finance ministers and central bank heads have previously expressed support for reducing dollar reliance and increasing trade in national currencies.
- Russia’s Deputy Minister of Finance noted a broad support within BRICS for building new payment mechanisms and developing central bank digital currencies.
- Former US President Donald Trump’s economic aides are reportedly considering penalties against countries moving away from the US dollar, including export controls and tariffs.
- The move towards de-dollarization has been fueled by Russia’s exclusion from the Western financial system post-Ukraine conflict and concerns over the seizure of Russian foreign assets.
Supporting article: https://www.rt.com/russia/597003-brics-dollar-allternative-currency/amp/
