The coalition of BRICS nations is rapidly advancing its agenda to diminish the dominance of the US dollar in the global financial system. Following its expansion to ten members in August 2023, BRICS has intensified efforts towards trading in local currencies and developing a BRICS currency to challenge the greenback’s supremacy in international markets.

The Momentum of De-Dollarization

Russia and China, founding members of BRICS, have been at the forefront of this de-dollarization movement, striking multiple deals in their local currencies. Russian Prime Minister Mikhail Mishustin reports a significant surge in bilateral trade turnover between these nations, reaching $200 billion ahead of schedule. Concurrently, the US dollar’s role as a global reserve currency faces mounting challenges due to the BRICS initiative, contributing to its continued 20-year decline.

Expanding Influence

The BRICS alliance’s growing influence is evident as at least 16 additional countries express interest in joining the movement to abandon the US dollar. This expansion is expected to further undermine the USD’s financial hegemony and control. Discussions throughout 2023 about a BRICS currency, combined with de-dollarization strategies, indicate a concerted effort to shift the balance of financial power in 2024.

The Future of the US Dollar

The potential of BRICS to dethrone the US dollar in 2024 poses a significant challenge to the long-standing dominance of the US currency in global trade. While the US dollar continues to enjoy substantial support worldwide, the momentum gathered by BRICS cannot be ignored. The inclusion of new members in 2024 and the possibility of trading in BRICS or local currencies could intensify the pressure on the US dollar.

BRICS: A Voice for Developing Countries

The BRICS alliance also presents an opportunity to amplify the voices and influence of developing nations in the global economic arena. Their collective action in promoting alternative currencies could pave the way for a more diversified and inclusive financial system.

The BRICS nations are poised to play a pivotal role in reshaping the global financial landscape. While the journey to replace the US dollar’s financial system is fraught with challenges, the potential impact of these concerted efforts by BRICS and its growing membership cannot be underestimated. The coming year may well be a turning point in the history of global finance.