BRICS vs Dollar

Dethroning the Dollar? What's BRICS up to?

What if we imagine the global economy like a high school cafeteria. Who would be 'that popular kid' who sits in the head table? The U.S., no doubt- while making the rules, and deciding who gets what. However, now, there’s a new group being forming at the other end of the table: BRICS.

And it looks like they aren't gossiping, but planning a financial rebellion. Uh oh!

Let's talk BRICS

BRICS is an international alliance consisting of Brazil, Russia, India, China, and South Africa. Five major economies from different parts of the world, united by one thing: tired of the dollar being the only currency that matters.

Together, they represent over 40% of the world’s population and around 25% of global GDP, with a growing influence in trade, energy, and finance.

You can say that they’re like the Avengers of emerging markets — different powers, one big mission.

Importance of Dollar

After WWII, the U.S. dollar became the world’s go-to currency. Countries started using it for everything - from trade and loans to oil and reserves, you name it. It's also called the dollar’s reserve currency status, and it gives the U.S. major superpowers such as printing money without as many consequences, Controlling international banking systems like SWIFT (No, not Taylor Swift, we mean Society for Worldwide Interbank Financial Telecommunication) and even sanctioning countries by freezing their dollar access just like it did to Russia.

BRICS’ Big Idea to dethrone the Dollar

The goal? De-dollarization - moving away from the dollar so they can have more control over their economies, trade, and political decisions. They are doing this by-

1. Trading in local currencies – China and Russia are carrying trades in yuan and rubles, not dollars.

2. Building a BRICS-based payment system so they don’t have to rely on Western-controlled systems like SWIFT.

3. Creating a new shared currency? There are talks of a gold-backed BRICS currency have been flying. No official launch yet, but you never know.

Can They Actually Pull This Off?

Short answer is Maybe - but it’s complicated.

Time for a reality check:

The U.S. dollar is still dominant: It makes up nearly 60% of global reserves and over 80% of global trade. Woah.

And of course, trust matters. Countries and investors trust the dollar because the U.S. economy is stable and its financial systems are mostly transparent.

Let's not forget the BRICS's has internal drama. China and India have border beef. Russia’s got sanctions. South Africa has political chaos. Not exactly “group project” harmony.

That said, China is rising fast, and more countries like Saudi Arabia, Iran, and Argentina are eyeing BRICS. They’ve even talked about BRICS+, expanding the squad. So it’s not a joke. It’s more like a slow-burning plot twist that could change how the world works.

If BRICS can build a serious alternative, the world might end up with a multi-currency system, where power is more spread out. Think less Monopoly money, more UNO deck that's wild, unpredictable, and strategic.

TL;DR (still read it ;p)

To sum up, BRICS is tired of the U.S. dollar being the main character and wants a financial revolution. They want to trade in their own currencies, maybe create a new one, and break free from the U.S.-led financial system. It’s bold, risky, (and iconic) but it could seriously shake up the global economy if it works.

Stay tuned for what's about to come!