A former White House economic advisor says a coming BRICS-issued currency has the potential to topple the US dollar’s dominance in international trade.
In a new article on Foreign Policy, Joseph Sullivan says that a BRICS-issued money would enable its members – Brazil, Russia, China, India and South Africa – to turn their backs on the dollar and trade goods and services using the new currency, which he calls “the bric.”
According to Sullivan, who served during the Trump administration, the bric could usurp the “dollar’s place on the throne” as BRICS is composed of economic heavyweights in their respective regions.
The economist goes on to say that the bric could be the beginning of the end of the dollar’s reign.
“Is it realistic to imagine the BRICS using only the bric for trade? Yes.
For starters, they could fund the entirety of their import bills by themselves. In 2022, as a whole, the BRICS ran a trade surplus, also known as a balance of payments surplus, of $387 billion – mostly thanks to China.
The BRICS would also be poised to achieve a level of self-sufficiency in international trade that has eluded the world’s other currency unions.”
As for the US government’s reliance on the dollar to keep other countries in line, Sullivan says the reaction of other nations following the financial sanctions imposed on Russia indicates that the weaponization of the USD will become increasingly ineffective.
Although Sullivan believes that the bric has the potential to dislodge the dollar, he says that it will still take time to dethrone the USD.
“The dollar’s reign isn’t likely to end overnight – but a bric would begin the slow erosion of its dominance.”
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