BRICS countries don’t oppose the usage of the US dollar but are seeking alternatives in global trade. The alliance has agreed and also believes in the importance of an alternative currency system for international settlements. “Many wonder if the US dollar will be abandoned. No one is planning to do that,” said Celso Amorim, Brazil’s International Affairs Advisor.

He added that the US economy is crucial to everyone, including BRICS members, as its finances are closely linked to all developing nations. “The United States is a big country whose economy is crucial for the entire world. However, there still needs to be an alternative,” currency or payment mechanism, he noted.

The diplomat also touched upon the topic of BRICS using local currencies for trade and not the US dollar. He stressed that the talks are still in their early stages and the development is yet to be full-fledged. “People keep saying that BRICS should shift to trade in national currencies. Indeed, it is one of the options,” the Brazilian leader’s advisor pointed out, adding: “However, all these projects are currently in the development stage.”

Also Read: BRICS Strive For De-Dollarization, But Numbers Tell a Different Story

BRICS Wants An Alternative Option to the US Dollar

Despite rewriting several trade deals, using local currencies for settlements, and sidelining the US dollar, the BRICS alliance is yet to find that single currency that can be its saving grace. China extensively promoted the Chinese yuan as that currency, but members are not fond of the idea. Only Russia and Iran are keen on accepting the Chinese yuan, due to no other choice, as their economies are sanctioned by the US.

They are also not in a position to launch a new BRICS currency to challenge the US dollar. The feasibility of the idea is too expensive to begin with and requires major work to bring it to life. It is not possible as it requires the work as equal to that of handling and operating a central bank.