FX.co ★ BRICS fails to dethrone US dollar

It seems that massive de-dollarization and the creation of a unified BRICS currency are likely to remain just a dream for now. The BRICS nations do not share Russia's initiative to abandon the US dollar. Two of the BRICS giants, India and China, have stated that neither the yuan, not the rupee, gold, Bitcoin, and ruble can replace the US currency. Recent talks on de-dollarization became notably louder at the BRICS summit, where a grouping of Brazil, Russia, India, China, and South Africa discussed a unified BRICS currency to challenge the US dollar's dominance. However, it appears that a unified currency is too difficult to create nowadays. For such a move, BRICS nations would need to establish a joint central bank and abandon their national currencies. This is a long journey, akin to the decades of groundwork Europe undertook for the euro. Meanwhile, the US dollar accounts for 48% of global payments via the Swift system, with the euro trailing at 23%. Furthermore, India and China have quite a few disagreements. Thus, they are unlikely to relinquish their monetary policies. Their relationship remains tense, a sore point for the BRICS bloc, with territorial disputes along their shared Himalayan border being a sticking point. Beyond political differences, both nations are strategic economic rivals. According to IMF projections, India's GDP will surpass China's within the next 50 years.