Could the US Dollar Be Replaced?
Author: Alina SandersPauls’ comments were made against a backdrop of debates around replacing the U.S. dollar with a BRICS’ currency. The BRICS bloc is made up of Brazil, Russia, India, China and South Africa, who have been discussing the possibility of a new currency since the announcement of Vladimir Putin at the 14th BRICS summit in China last year.
The potential new currency could be backed by gold or other commodities and the details for what it would look like could be revealed at the upcoming BRICS summit in South Africa in August. Paul also highlighted the fact that the U.S. government is apparently trying to ‘rig’ the gold price in order to make the dollar look stronger.
Therefore, while no certainties are promised, what is sure is that the matter of de-dollarization is a pressing one and, with the growing size and presence of emerging markets, the U.S. dollar and its position on the international stage may not remain the same.