BRICS nations are continuing their de-dollarization mission at a fast pace to eliminate the U.S. dollar-dominated financial system. Following expansion to ten nations in August 2023, the BRICS alliance has continued to practice trade in local currencies and the development of a BRICS currency to dethrone the US dollar in global markets. Now, BRICS countries are taking the next steps in multiple agreements to abandon all use of the greenback.
BRICS founding nations Russia and China have been the two leading nations in de-dollarization, agreeing to multiple deals in local currencies. According to Russian Prime Minister Mikhail Mishustin, the business ties between the two nations are booming, with bilateral trade turnover already reaching “$200 billion ahead of schedule.” Furthermore, the US Dollar has continued its 20-year decline amid the BRICS de-dollarization efforts, seeing its standing as a global reserve currency challenged by a shift in international sentiment.
At least 16 new countries are interested in joining BRICS to ditch the US dollar. In turn, this will only weaken the USD’s financial system and control. The growing development of a BRICS currency that can come in 2024 will further deteriorate the US Dollar. Throughout 2023, discussions of a BRICS currency were prominent. Moreover, they have been combined with the overall de-dollarization efforts of the alliance and interested outsiders.
Will The US Dollar Financial System be Eliminated by BRICS in 2024?
With multiple countries globally looking to end reliance on the US Dollar, BRICS may be well on its way to weakening the US Dollar financial system altogether in 2024. However, this remains to be seen as an easy feat. The US currency has reigned supreme in global trade for decades. It hasn’t ever seen a threat like that of which BRICS is presenting. It will take much more effort for the financial institution, the US dollar, to be ditched globally. Moreover, there is still much more support for the US dollar and the US as a whole than for BRICS.
On the other hand, the BRICS alliance could elevate the voices of developing countries. This may further garner support for overthrowing the US Dollar financial system. If these nations join BRICS in 2024 and accept trading in BRICS or local currencies, the US Dollar may be in hot water. Again though, BRICS still has plenty of work left to do to accomplish this.