Chance of a new BRICS currency?

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Billythebuilder

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Trump possibly considering direct U.S military action against Iran even though like in the Iraq war - no "Weapons of mass destruction" found.
Russia and China getting involved verbally.

Tariffs are considered by some as an act of war.
Sanctions against Russia. NATO vs Russia.
China's belt and road initiative.

Could a new BRICS currency become more of a possibility if foreign relations get worse with these countries?

Could a BRICS currency work in reality?
 
I see Brics conference on in Brazil this week but without China or Russia, doesn't appear to be much coherence or togetherness with the Brics, at the end of the day they put their own interests first. With Russia prosecuting a murderous imperialistic war and China prosecuting its own imperialistic interests I cannot see much trust or cooperation between the Brics, its all just window dressing.
 
Whatever about the politics of it - limited - the economics of it would need to also stack up.

For the currency to be anyway credible the BRICS countries would need to show commitment to convergence towards a common set of economic standards. Look at Europe, to join the euro you need(ed) low inflation, lowish/falling Government debt etc.

In the case of Europe, geography and trade connections were pretty well developed - there was an economic benefit (improved trade) associated with giving up some level of national symbolism/autonomy. I'm not sure such a strong rationale can be made for the BRICS.

Even if they did manage to overcome the issues what would it bring to the global table that the world didn't already have with existing currencies on offer? Okay you might be uneasy about the US Dollar but there's always the euro, Sterling, Swiss franc etc. None of these are perfect but look at the credit ratings for some of the BRICS countries and those imperfections would look small.

Or put another way, given the size disparity between BRICS members, what would this currency offer above and beyond the yuan right now.

www.statista.com

Infographic: BRICS Plus: Equal Partnership of Unequals?

This chart compares the GDP of current and future BRICS countries in 2022.
www.statista.com www.statista.com
 
I just wonder how much of a threat the U.S gov sees BRICS as being to the USD, compared to say the odds of buying a winning lottery ticket? LOL

Oil no doubts plays a big part.

Today :

"Trump threatens extra 10% tariff on nations siding with Brics"​


Jan 31, 2025 : "

"Trump repeats tariffs threat to dissuade BRICS nations from replacing US dollar"​


31 Jan 2025 — US President Donald Trump has threatened BRICS nations with 100% tariffs if they replace the US dollar as reserve currency.
 
Billythebuilder said:
Today :

"Trump threatens extra 10% tariff on nations siding with Brics"​

Click to expand...
www.theguardian.com

Trump and US commerce secretary say tariffs are delayed until 1 August, sparking confusion

President says team will start sending trade partners letters with new tariff rates ahead of this week’s original 90-day deadline to make deal
www.theguardian.com www.theguardian.com
With his previously announced 90-day pause on tariffs set to end on 9 July, the president was asked if the new rates would come into effect this week or on 1 August, as some officials had suggested.

“No, they’re going to be tariffs, the tariffs, the tariffs are going to be, the tariffs,” the president began uncertainly. “I think we’ll have most countries done by July 9, yeah. Either a letter or a deal.”
Click to expand...
:rolleyes:
 
Maybe the likes of Russia, Iran, Palestine, North Korea etc. could come up with a currency to rival BRICS? They could maybe call it MORTAR.
 
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