BRICS, an alternative single currency to the dollar? Proposal by President Lula-Corriere.it

An alternative single currency to the dollar for trade between the BRICS countries (Brazil, Russia, India, China and South Africa). The idea was launched by the Brazilian President, Luiz Incio Lula da Silva, who on Tuesday August 22 will present his proposal in Johannesburg, South Africa, on the occasion of the BRICS summit. This currency, the progressive leader said, “will allow greater trade between countries like Brazil and South Africa without relying on the currency of a third country,” referring to the dollar. “Cooperation between the countries of the Southern Hemisphere is essential to address inequality and the climate crisis and for a more balanced and equitable world,” added Lula, who also wants other countries like Saudi Arabia and Argentina to be included in the BRICS. According to some rumors, the new currency could be named R5, from the initials of the five group currencies (real, ruble, rupee, renminbi, and rand).

hub with Beijing

Lula has long hoped to end the US dollar’s dominance in global trade and push for the BRICS currency to become the reference currency in trade between emerging countries. A common goal with Beijing that wants to encourage more use of its currency. However, despite the increase in renminbi transactions in bilateral relations, the Chinese currency is not currently a real competitor to the dollar. As predicted by Lula himself, the premise is to launch a new single currency.

Danger to the dollar

The launch of a common currency by the BRICS group could mean a collapse of the dollar, according to Rich Dad co-founder Robert Kiyosaki. One of the biggest changes in world history will happen on August 22, 2023. The BRICS countries are holding a conference in Johannesburg to create their own gold currency. What does this mean for the US dollar? ”, the expert wondered, according to reports from the financial platform Investing.com. For Kiyosaki – who predicted the collapse of Lehman Brothers in 2008 – if the BRICS countries adopted “a cryptocurrency studded with gold, the dollar will fry.”