The U.S. Dollar is the world’s reserve currency, playing a key role in global trade and foreign exchange markets. However, the BRICS bloc, a multilateral alliance, has been developing an alternative currency for trade between member countries for some time now.
To put this into perspective, instead of relying on the U.S. Dollar and giving power to the United States, BRICS would issue a common currency to trade commodities like oil, grains, and minerals. Meanwhile, each separate member would still use their own currency. But that’s not all, as this BRICS currency would not be fiat but backed by tangible resources like gold.
This situation would progressively cause the U.S. dollar to lose its hedge in the global economy, as the BRICS members have tremendous leverage—extensive natural resources and huge populations.
When the BRICS currency becomes a reality, global finance will change forever. This article will discuss these details and, more importantly, how to navigate this changing economic order.
The BRICS bloc includes controversial members such as China and Russia, who are often deemed America’s enemies. Trump does not stop talking about China and aims to impose hefty tariffs on their imports. Russia is depicted as some sort of devil incarnate by almost every administration, especially since the Ukraine conflict. These geopolitical tensions have alerted the BRICS countries that permitting the U.S. to impose sanctions is a recipe for disaster.
BRICS, therefore, came up with the idea of issuing its own currency. This currency would help all of its members to trade with each other without relying on the U.S. dollar, thereby taking power away from the U.S. What’s more, given the sanctions and trade wars, this currency would help them navigate these hurdles more easily.
The impact of this currency won’t necessarily be immediate, and we don’t know if, over time, it could dethrone the States’ financial hegemony since everyone (individuals and governments) widely uses the dollar.
The constant sanctions and trade wars have backfired on the U.S. and made BRICS members aware that relying on the whims of the States is not in their best interest. Instead, they have been building a Plan-B to avoid the issues that come with American foreign policy. The benefits are massive: avoiding sanctions and reducing dependence on U.S. financial systems.
The BRICS bloc has a clear long-term vision where dependency on the U.S. is minimal. Trump has been elected, and his Administration, instead of keeping the U.S. economy competitive and encouraging free trade, aims to impose tariffs on BRICS nations and any country that tries to replace the U.S. dollar in international trade.
These topics are important and can shape the world order as we know it, but Trump continues to pursue his strategy of waging economic wars. Meanwhile, BRICS members are working on their currencies to create an alternative to U.S. dominance.
With the U.S. dollar losing value, Canada’s rising cost of living, and Europe’s stagnation, BRICS nations are working hard to reduce their economic and political reliance on the U.S. and its currency
The U.S. and the West as a whole are in a tough spot. The U.S. dollar is losing value every year due to the astronomical national debt and the irresponsible policies of the Federal Reserve. Canada is undergoing a similar situation, with people finding it extremely difficult to afford rent and groceries. Meanwhile, Europe is experiencing little to no growth.
In the meantime, the BRICS nations are working hard to reduce their political and economic dependence on the U.S. As other countries join the bloc, its economic power will continue to increase. Key nations like Iran, Saudi Arabia, and the UAE, all of which have recently joined, are oil-exporting countries. They will shake the world’s economy if they trade oil in the new BRICS currency instead of the U.S. dollar. It’s not far-fetched to think that the U.S. dollar could cease to be the world’s reserve currency.
Strategies such as diversifying into tangible assets and different jurisdictions provide protection against future challenges like inflation, currency devaluation, and tax increases
The U.S. could lose its hegemony while the BRICS nations work hand in hand to improve their economies and trade with each other, avoiding all the hurdles the U.S. has imposed.
The rails have been set, and there’s no going back. Rather than waiting for events to unfold, taking action and securing your net worth would be wise. Strategies like diversifying across tangible assets and jurisdictions will give you a hedge against future problems such as currency devaluation, inflation, and more tax increases.
You can design your own Plan-B, just as the BRICS nations are doing. Instead of being a victim of irresponsible leaders, take control of your financial future. If you don’t know where to start, subscribe to our newsletter and receive our free special report, ‘Plan-B Residencies & Instant Citizenships.’