The BRICS economic alliance has had a strong 2024 in terms of its de-dollarization mission. Led by its five founders and newly inducted member nations, the bloc is keen on ditching the US dollar as the lead global reserve currency. The alliance has turned to multiple industries and resources to achieve this goal, and those sectors have worked well thus far.
One of the bloc’s key tactics for overcoming US sanctions and increasing income has been the oil industry. For much of the last year, the BRICS economic alliance has continued to establish itself. Specifically, the bloc has affirmed its desire and capability to build a multipolar world. Moreover, over the last several months, it has consistently sought new ways to increase its relevance and prominence.
In addition, the BRICS bloc has increased their interest and further investments in gold. The precious metal is largely expected to be the backing for the bloc’s under-development currency. The alliance aims to get back to the gold standard and maintain a multipolar world for all trade and transactions.
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Furthermore, China has been the biggest investor out of the entire alliance in Gold. The World Gold Council reported that China is inspiring other BRICS nations to buy the precious metal as reserves and not the US dollar. China has accumulated more than 300 tonnes of gold worth $561 billion in the last 18 months alone.
With their efforts in Gold accumulation and Oil production, the BRICS de-dollarization effort has been working well this year. Compared to other global currencies, the US Dollar has weakened in value and prestige. As the bloc grows in numbers and interest, more countries worldwide are dabbling in switching to a new global reserve super currency outside of the greenback.
If BRICS and other countries stop using the dollar, the US economy could reach a stage of hyperinflation. The prices of essentials could hit the roof while wages across the country remain stagnant. A string of job cuts could also not be ruled out as firms will indulge in cost-cutting measures.
With the United States’ battle with Russia, China, and other BRICS countries not halting soon, the US Dollar and BRICS will be locked in a back-and-forth for some time.