The U.S. dollar is used by nations for international transactions because it is a stable currency that is easily convertible all over the globe and because resources like oil are priced in dollars. However, will the US dollar be replaced with BRICS currencies in the near future?
To compete with the US currency, BRICS members demand cross-border payments in BRICS currencies.
On June 23, a summit was conducted by the BRICS, an acronym for Brazil, Russia, India, China, and South Africa. The event, which was presided over by Chinese President Xi Jinping, was one in a long line of BRICS cooperation activities that started on June 6 with the second meeting of central bank governors and finance ministers and ended on June 28 with the second meeting of the committee of senior energy officials.
"We should also expand BRICS cooperation on cross-border payment and credit rating to facilitate trade, investment, and financing among our countries," said Xi in his opening remarks.
He...