BRICS Nations Consider Launching ‘Joint Currency’ to Challenge US Dollar Dominance

Ira Singh
Khabar Khabaron Ki,05 Jan’24

In a move that could potentially reshape global financial dynamics,Iran, the newest member within the BRICS alliance, has emerged as a vocal proponent for the creation of a joint currency among member nations. This ambitious proposal aims to confront the prevalent use of the US dollar in global transactions, advocating for a new payment system exclusively within the 10-member BRICS alliance.

Mehdi Safari, Iran’s Deputy Foreign Minister for Economic Relations has reportedly revealed that the country is keen on the formation of a new joint BRICS currency. The Minister added that Tehran will initiate the process if all members agree to the idea of a joint BRICS currency.

BRICS members China and Russia were advancing to dethrone the US dollar with a new currency. However, Iran is now catching up with both nations puppeteering similar ideas of a world equipped with de-dollarization ideals. “We are interested in creating a unified currency in the BRICS group, and this could be very effective,” said Safari.“By using national currencies, the process of eliminating the use of the dollar in commercial exchanges begins.” The Minister added, “And we are interested in continuing this process,” he said to Sputnik.

The statement indicates that Iran will push calls for a joint BRICS currency in the coming months. The country aims to continue with the process until the majority of the members agree to the idea. Iran and Russia’s economies have been impacted in recent years as the US pressed sanctions for sponsoring war and terrorism.

Potential Sectoral Impact: US Industries Potentially Affected if BRICS Shifts Away from Dollar in Trade

Speculations surrounding a potential move by BRICS nations to reduce their reliance on the US dollar in trade transactions have triggered discussions about the potential impact on various sectors within the United States. Such a shift, if realized, could have far-reaching implications for key industries, potentially reshaping trade dynamics. Here are some sectors that might face notable effects if BRICS countries pivot away from using the dollar:

A total of 5 U.S. financial sectors could be affected of BRICS stops using the dollar for international trade. The financial sectors that could begin to decline include banking, foreign exchange, tourism, and production. Below is the 5 sectors that will be impacted if the U.S. dollar is not used for settlements among BRICS members.
1.Banking and Finance
2.Technology and Fintech
3.International Trade and Investment,
4.Consumer Goods and Retail,
5.Travel and Tourism

First and foremost, the banking and financial sector will be the hardest hit as foreign exchanges will begin to decline. Secondly, BRICS is looking to create their own internet services and not depend on American technology for news and social media. Thirdly, foreign investors will stay away from the U.S. dollar as the debt crisis and deficit will only worsen.In addition, if the U.S. dollar comes back home, the cost of day- today essentials will become further expensive. Finally, tourists will begin to pay local currencies for their travels and leave the U.S. dollar behind. China and Singapore are already making tourists to pay in local currencies in their respective countries and not the U.S. dollar.