Why a Brics currency is a flawed idea

Financial Times/Paul McNamara/2-10-2023

“Within the Brics countries of Brazil, Russia, India, China and South Africa, there is a growing clamour to challenge the dollar’s hegemony.”

USAGOLD note 1: The complications implicit in the idea of a currency union could delay a Bric countries common currency for many years. That does not mean, however, that the yuan could not rise on its own to challenge the dollar at some point in the future.

USAGOLD note 2: In the meantime, the dollar remains the lead actor on the currency stage. At the same time, the real challenge for the dollar and those who hold it is the relentless decline in its purchasing power since it was converted to a fiat currency in 1971. That, too, is unlikely to change anytime soon.