One of the biggest potential developments for the BRICS bloc in 2024 is the development of its BRICS currency. Brazil, Russia, India, China, South Africa, and its new BRICS+ members are working to develop a new currency to ditch the US Dollar. Rumors have come and gone that we may get a grand announcement on the status of BRICS currency at the annual summit later this year. However, will the currency be more valuable than its rival US Dollar at launch?
For context, BRICS has been around for years. However, over the past year especially, the bloc has grown in both numbers and interest by news outlets. The intergovernmental organization housed some of the largest market economies in the world, and in 2023, it invited several other top economic nations to join. Furthermore, the group is looking to establish a new currency that can be used alongside local currencies in trade. This in turn would weaken the United State’s powerful dollar worldwide. It is important to note though, that this is no easy task.
The US Dollar has reigned supreme in markets and global trade for decades, as the US is one of the more powerful governments and countries globally. While the greenback had a rough 2023 due to growing inflation, interest rates, and other issues, it is still the cream of the crop. Some experts do agree that the currency weakened in 2023, and may not even be one of the ten strongest in the world anymore. However, for a brand new currency like BRICS currency to upstart it right at launch would be unheard of, and extremely difficult for the alliance to pull off.
When Will BRICS Launch, And How Quickly Can It Overthrow USD?
Even with the backing of some of the most powerful market economies and governments east of the Atlantic, BRICS Currency is still a concept and doesn’t appear ready to launch. Speculation has flown that the alliance will announce the new currency at its next summit later this year. However, even if the currency is launched this year, it will take time for BRICS’ currency to outgrow the US Dollar.
One of BRICS’ biggest missions in 2024 has been to fully abandon the US Dollar. Steps towards the new currency will likely also fall in the same path as achieving this goal. However, it will take time for the BRICS currency to overthrow and be worth more than the US dollar.