According to a former White House economic adviser, a BRICS-issued currency may challenge the US dollar’s supremacy in international commerce.
According to Joseph Sullivan in a recent Foreign Policy piece, a BRICS-issued currency would allow its members – Brazil, Russia, China, India, and South Africa – to abandon the dollar and trade goods and services using the new currency, dubbed “the bric.”
According to Sullivan, who worked in Trump’s administration, the BRICS might steal the “dollar’s place on the throne” since the BRICS are economic giants in their respective areas.
According to the economist, the bric might be the beginning of the end of the dollar’s rule.
“Is it realistic to expect the BRICS to rely solely on the bric for trade?” Yes. For instance, they could cover the whole cost of their imports on their own. In 2022, the BRICS collectively had a trade surplus, commonly known as a balance of payments surplus, of $387 billion, owing mostly to China.
The BRICS would also be positioned to reach a degree of international trade self-sufficiency that has eluded the world’s previous currency unions.” In terms of the US government’s dependence on the dollar to keep other countries in line, Sullivan believes that the response of other countries to the financial sanctions placed on Russia shows that the weaponization of the USD will grow more ineffective.
Although Sullivan believes that the bric has the potential to dethrone the dollar, he believes that it will take time. “The dollar’s reign is unlikely to end overnight, but a bric would begin to erode its dominance gradually.”Â
