THE WAR AGAINST THE USD AND A NEW WORLD FINANCIAL ORDER 

Did you know that the dominance of the United States' dollar is under threat as the soon-to-be-released BRICS currency is gaining prominence in the new financial world order?

The battle against the United States' Dollar (USD) as the world currency reserve by the BRICS countries is gaining momentum as its member states are buying massive amounts of gold to topple the USD's dominance on the global stage.

BRICS comprises the five countries of Brazil, Russia, India, China, and South Africa. According to the latest report from U.S. Global Investors, BRICS nations have increased their gold buying expenditure in 2023 in order for the developing nations to rely less on the USD with plans to create a new currency to settle international trade. 

The CEO of U.S. Global Investors, Frank Holmes, said that the pattern of BRICS nations buying gold is worrisome. The BRICS nation’s Central Banks are buying gold at a record pace in both Q1 and Q2 of 2023. The World Gold Council published a report saying that China purchased 102 tonnes of gold, while Russia purchased 31.1 tonnes of the precious metal. In addition, India added 2.8 tonnes to its gold reserves in 2023, for the first time in more than a year. India accumulated gold for several months and could add more by the end of the year.

The alliance of BRICS nations needs gold to back their native currency and shift away from the dollar. The USD has served as the global reserve for nearly a century and its position is being challenged in 2023.

This development puts the dollar on the back foot as gold could be used as collateral and not the USD. Over time, BRICS nations could rely more on their gold reserves and not hold the U.S. fiat in their treasury. The global trade dominance could be tipping towards BRICS as they lay out new paths to topple the dollar.

A total of 24 countries have so far indicated their interest to accept and trade with BRICS currency when it launches on the International stage. The dollar’s dominance could weaken if the BRICS currency gains prominence, giving Eastern nations more financial power than the United States.

South Africa’s BRICS ambassador Anil Sooklal said that 19 countries have shown their interest to join the alliance, reported Bloomberg. Sooklal confirmed that 13 countries have formally sent applications to join the BRICS alliance. He added that five other countries have informally requested to be a part of the block.

If granted admission, the BRICS which currently comprises the five countries of Brazil, Russia, India, China, and South Africa, would become a total of 24 countries that are participating to dethrone the USD from its global reserve status.

The countries that have shown interest to join the BRICS alliance are Saudi Arabia, the United Arab Emirates (UAE), Argentina, Egypt, Bahrain, Indonesia, Algeria, and Iran. Also, two unnamed countries from East Africa and one from West Africa have sent their applications, according to the ambassador.

The development shows that a handful of countries are interested to trade in the BRICS currency. The nations want to move away from the U.S. dollar and end American financial supremacy and also because the USD comes with a risk of debt that could wreak havoc on local currencies if the U.S. slips into a recession.

If more countries ditch the dollar, the U.S. will have no means to fund its deficit, making the dollar weak. This could make the soon-to-be-released BRICS currency gain prominence in the new financial world order. And if nations around the world settle for trade with the BRICS currency, the dollar’s value could plummet.

Source:

https://watcher.guru/news/24-countries-ready-to-accept-brics-currency