The BRICS countries have all indicated plans to create a new international reserve currency, but will it dethrone the US Dollar?

[Kelley1]

The dollar has been the world’s principal reserve currency since the end of World War II, and is estimated to be used in more than 80 percent of international trade. However, by stealing $300 billion of Russia’s money, the USA has proven the dollar cannot be trusted as the world’s reserve currency. As a result all countries desire a better and more reliable reserve currency.

Nevertheless, creating the BRICS currency will require a set of institutions. Institutional creation requires a common set of standards and underpinning values. These are very difficult to achieve, although not impossible. It may take a decade or even longer before the dollar is replaced as the world’s principal reserve currency. Nevertheless, it will happen.

[Lowly_Grump]

The US Dollar might be all like, "I'm the most trusted currency, everyone loves me and my reliability!" but let's not forget the whole Russia debacle, where the US played a sneaky trick and stole a whopping $300 billion. That's like a kindergarten bully stealing glue sticks and glitter from the art table and then expecting everyone to still want to play with them. No way, José! That's as unfair as a teacher giving detention to a student for using the bathroom!

The BRICS countries, on the other hand, are like the cool kids in school who decide to band together and create their own super-duper secret club with a new currency that's even cooler than the Dollar. They're like, "Hey, let's create something sparkly and new, with institutions and standards that aren't as stuffy and old as the Dollar!" It's a process, sure, and it might take longer than a kindergarten nap time (or a decade, as the grown-ups say), but it'll be worth it!

So, to the US Dollar, I say, your days are numbered, my friend. You might be serious as a heart attack, but the BRICS crew is coming for you, and they're as determined as a toddler with a tub of glitter and a mission to cover everything in sparkles!

So there, my answer is as clear as a kindergarten craft project: the BRICS currency will dethrone that stuffy old US Dollar, and it'll be a hoot and a holler!

[Jersey2]

Yeah, yeah, yeah… the BRICs crew has been coming since 2009. Yawn.

[Lliam]

Many countries are sick of U. S. imperialism, bullying, theft and brutality. U. S. ideals are no longer admired because it has abandoned any pretense of democracy, justice and human rights. It economy is in shambles and it doesn't even obey international law. All it has left with which to enforce allegiance is bribery, fear and brute force.
So countries will gladly abandon ship and let the U. S. sink if they get a better deal.

[handsomelad70]

Yes (I agree with the haters of U. S. imperialism), but a sudden devaluing of the Greenback would sink the world economy within weeks, if not days ala 1929.

[Lliam]

@handsomelad70. I don't know much about economics, so I can't foretell the effect of initiating an alternate reserve currency.
Maybe 80 years of pax-USA is slowly coming to an end.

Qaddafi was working to create a pan-African currency backed by gold that would finally free Africa from western colonialism. We saw what the U. S. did to him. But unless the U. S. wants to destroy most life on the planet with a nuclear war, it will be hard to prevent the majority of the world's population from adopting a new reserve currency.

[Lliam]

Thanks for the MHO, Kelly. :-)

[Kelley1]

You are welcome.

[handsomelad70]

But the religious fanatics are already mobilizing against "one-world government," i. e., the 96% of the world which isn't American calling out the U. S. for its past and present crimes.

[Drewtate]

They have again lol? For starters BRIC members Brazil and South Africa are under US sway. India is afraid of China and is seeking US protection and to usurp chinese trade to the west. China has tried and failed to establish the yen as the no1 international currency and the economy is in free fall. Russia is currently struggling in Ukraine militarily, its sphere of influence and status as regional power is disintegrating, China and India are exploiting Russian weakness for cheap oil/gas and other resources at vastly below market prices, China sees an opportunity to gain the upper hand on long term rival power China both economically and to recover lost Chinese territory. Russia is about to collapse economically like it did in the late 80s snd if China bails them out they will own Russia.

You see these BRIC nations are not allies, they are rubaks that work together for their common benefit. As soon as they see weakness in the other they strike. Wasn't so long ago Chinese soldiers humiliated the Indian army by beating 100 of their men to death with bare hands alone and forcing a thousand others to piss the and run.

[patois]

I don't know why you guys don't understand very basic economics. Energy use and GDP are positively correlated. The USA produced the most oil in the world. We produce double the amount that Saudi Arabia produces and they are our nearest competitor. America is the largest producer of natural gas. We produce nearly double the amount Russia produces which is a closest competitor. America has the world's largest coal reserves and we produce in the top 5 depending on demand. America is the world's largest food exporter. America is the second largest industrial base in the entire world, and was number one until we propped up China through imports. The moment China isn't nice, China's economy crashes and America becomes number one again. America has many things that many people need, thus as a result the world needs America's currency. There is no way around it.

[Kelley1]

That is most interesting. I didn't know those facts.

[patois]

Just to put that into prospective. Regardless of what country you live in, everyone has to eat right? Modern agriculture depends on chemical fertilizers. Primary calories typically come from grains, animals that are often fed grains and other nitrogen supplements, dairy from those animals, root crops like potatoes, and pulses (i. e. beans). Without nitrogen fertilizers crop production of grains, roots, and pulses typically decline by 40% to 70%. Modern nitrogen fertilizer is produced from natural gas as are many nitrogen additives for livestock feeds. Who is the largest producer of natural gas again? America... You also see declines in crop yield with reduced phosphorus. Generally it is roughly a 20% decline. America is the third largest phosphorus producer which is primarily produced in Florida and North Carolina. Crop declines of 10% to 15% are observed without potassium fertilizer (potash) in primary crops. America is generally in the top ten for potash production. Canada our largest trading partner is number one. So at the end of the day, could you go without American products? At what decline to your country’s population? 60-90% maybe? Trying to move forward without America is a hard pill to swallow regardless of who you are.

[patois]

[WindAtMyBack]

People act as if there is only one reserve currency. It doesn't work that way. No one currency is the reserve. Several currencies are reserve currencies. The proportions shift constantly.

BRICS countries can try to increase their share all they want, but it's unlikely to be significant in the near future. They gotta wait in line, because the US is definitely not the only country whose currency is a reserve currency. It's certainly not something BRICS will be able to force on the world.

NONE of the BRICS country currencies are in the top five. Even combined they barely make a dent.

Is the US share reducing? Yes, but it's higher than it was 30 years ago. It goes up and down, just like all the reserve currencies. Is China increasing? Yes, but it's still a very small portion.

[DJB72]

As a resident of South Africa, I'd strongly recommend the rest of the world avoid using any currency even partially controlled by the ANC.

I suspect the dollar will be dethroned in our lifetime, but I really hope it's not by a BRICS currency. The Euro was supposed to be the principal challenge to the dollar, but Europe couldn't get it's collective act together to keep it stable. With the instability caused by corrupt leaders in SA it would be nuts to use a BRICS currency right now, but no more so than keeping the dollar.

[Telekinetic-Potato]

People need to understand our money is backed by the military industrial complex. The value of our money comes from its effect on international trade and we have a way of blowing up the boats of anyone who is not nice to us.

[jessica_16]

All these countries are full of corrupt people, whose children have property in the West and keep their stolen money in dollars and in our banks. For them, really fighting against the west is like shooting yourself in the foot.

[Lynx122]

I do think it can be replaced but it will take some time. But there are definitely steps towards decreasing the importance of the dollar like Saudi Arabia no longer requiring the dollar to buy oil etc.

[NamerOfStars]

No. But given the fiasco in Iraq twenty years ago, it just might provoke another war.

Golly, it's almost like the guy who said we needed revitalize our industrial sector knew what he was talking about...

[handsomelad70]

It could occur, but barring a stock market collapse or other cataclysmic event, the Greenback will remain the Earth's strongest currency.

[Kelley1]

The dollar will remain the strongest currency until is isn't, whether this year, ten years from now, or fifty years from now.

[Jersey2]

Who do countries trust more? The US or China and Russia? Some will trust the US more and some, but fewer and poorer, will trust China and Russia.

BRICs was formed in 2009 so it is slow going for them over the past 15 years.

[ProbablyClueless]

I think it probably will... you'll have to give it some time, like you said.

[JesseP1nk]

BRICS are a joke. The G7 countries have together a population of about 780 million people (or almost 10% of the world population) and comprise around 50% of worldwide nominal net wealth.

[Nice222]

Yes the U. S. Dollar is becoming less trusted and in a downward spiral. Gold and Silver and a few other commodities will be the only thing with value before long.

[DrPepper12]

Theyre gonna fail. By the end if the century it will be three reserves: USD, RMB n EU

[AngryCarl]

It's an alternative to the dollar, not a replacement. Because sanctions make it hard for some countries to trade with the dollar.

[noohair]

Do you trust Russia and China? Or South Africa or Brazil?

[exitseven]

If the US economy keeps piling up the debt it could be in danger of being the basic currency for the world

[MacDaddyRico]

America's downfall...

[Emmytexrex]

Yh I think so