(Opinion) As Brazil gets ready to lead BRICS in 2025, it’s nearing the end of a significant study on a new currency.
Though Brazil refutes that this study aims to challenge the U.S. dollar, the intention is to bolster trade among BRICS nations using their local currencies.
This could reduce dependence on the U.S. dollar, which America has sometimes used as a tool for sanctions.
Brazilian economist Paulo Nogueira Batista Jr. points out to local media that the U.S. dollar’s dominance has allowed it to impose sanctions, citing Russia as a prime example.
Batista Jr. suggests the U.S. may be its own worst enemy, eroding trust in the dollar.
A potential new currency, dubbed the R5, could emerge.
This term arises from the starting letter of BRICS currencies: real, ruble, rupee, renminbi, and rand.
The R5 could initially be an account unit, using a weighted system of the five currencies, without replacing them.
While the R5’s inception doesn’t mean a single physical currency or a central bank, it underscores a pushback against centuries of European and U.S. dominance.
BRICS leaders aim to reconcile differences at a retreat in Johannesburg, with Russia’s Putin attending virtually due to legal issues.
Expansion of the BRICS group, led by China’s interest, has Brazil cautious of diluting its influence and being overshadowed.
Brazil proposes entry criteria to maintain balance.
The country also fears its quest for a permanent UN Security Council seat might be hampered by internal BRICS competition.
Clearly, the global order is shifting, challenging the longstanding supremacy of Europe and the U.S.