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US dollar's future at risk as BRICS plans currency shift

US dollar's future at risk as BRICS plans currency shift

GrafaGrafa2024/11/05 14:00
By:Liezl Gambe

As BRICS nations ramp up efforts to reduce dependence on the U.S. dollar, Russian officials argue that America’s currency dominance is waning due to its politicized use in global affairs. 

“The dollar, which for decades has been advertised to us as the common property of all mankind, has been turned into a weapon of oppression and punishment of geopolitical competitors and simply disobedient ones,” Russian Foreign Minister Sergey Lavrov stated on Monday, according to Tass. 

Lavrov claimed that the West’s reliance on the dollar as a “weapon of oppression” has weakened its role as the world’s reserve currency. 

This approach, according to Lavrov, has “essentially written a death warrant for the dollar as a global reserve currency and a means of international settlement.”

He further noted that such actions are undermining the globalization system the West once championed.

In response, BRICS nations have intensified their move toward alternative currencies. 

“Everybody wants to create alternative payment mechanisms, interbank settlements with the use of national currencies,” Lavrov explained, highlighting the group’s collective push under Russia’s current BRICS presidency.

Maxim Oreshkin, Russian Deputy Chief of Staff, supported Lavrov’s comments, emphasizing BRICS’ economic influence on a global scale. 

“BRICS countries are continuously dominating the global economic growth and are already leaders in the world economy,” Oreshkin stated, noting the rapid economic expansion in South Asia and Africa, particularly in countries like Nigeria and Ethiopia.

Lavrov suggested that BRICS’ influence has attracted numerous nations, with many expressing a desire to join the bloc.

“People in countries of the global East vote primarily for politicians proclaiming their plans to establish closer relations with BRICS one way or another,” Lavrov added, signaling that expansion talks will continue in 2025, although some high-level meetings will remain limited to full members. 

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