The US dollar has been the world's reserve currency for several decades, with most international trade being conducted in dollars. This has given the United States significant economic and geopolitical power. However, the BRICS nations believe that the dominance of the US dollar is not sustainable in the long term and that a new global currency system should be established.
To undermine the US dollar, the BRICS nations have been taking steps to reduce their dependence on the dollar. One such step is increasing the use of their own currencies in bilateral trade. For example, India and China have signed an agreement to trade in their own currencies, bypassing the US dollar. Brazil and Russia have also taken similar measures.
In addition, BRICS nations have been investing in gold, which is traditionally considered a safe-haven asset. This is seen as a way to reduce their dependence on the US dollar and diversify their reserves. China, in particular, has been aggressively buying gold in recent years, and its central bank has been actively promoting the use of gold as a reserve asset.
Furthermore, the BRICS nations have been calling for reforms to the global monetary system to reduce the dominance of the US dollar. They have been advocating for a more multi-polar currency system, where other currencies such as the euro, yen, and yuan have a greater role to play. This would reduce the reliance on the US dollar and make the global economy more stable.
In conclusion, the BRICS nations are working towards undermining the dominance of the US dollar as the world's reserve currency. They are taking steps to reduce their dependence on the dollar and promoting the use of other currencies such as their own and gold. They are also calling for reforms to the global monetary system to reduce the dominance of the US dollar. While it remains to be seen if these efforts will be successful, they are certainly challenging the status quo and signaling a shift in the global economic order.
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