By Mohammed Bello Doka
In a bid to reduce reliance on the US dollar and foster a multipolar financial landscape, BRICS (Brazil, Russia, India, China, South Africa) has intensified efforts towards de-dollarization. Championed by South Africa’s BRICS Ambassador Anil Sooklal, the alliance is advocating for increased usage of local currencies in cross-border transactions, aiming to bolster the economies of member nations.
Sooklal contends that the era of the US dollar dictating global trade is waning, emphasizing the need to embrace a de-dollarized world. Recent moves by Russia, such as the utilization of digital financial assets to circumvent US sanctions, exemplify a growing trend towards alternative currency mechanisms within the bloc. If adopted widely, such strategies could significantly diminish the dominance of the US dollar in international trade.
BRICS envisions a financial landscape where local currencies take precedence, relegating the US dollar to a secondary role in transactions. The upcoming 16th summit slated for October promises to shed more light on the alliance's strategies to fortify local currencies and reshape the dynamics of global trade. As BRICS continues to assert its influence, the repercussions for sectors reliant on the US dollar are poised to be profound.
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