BRICS currency creates dilemma for the dollar

The term "BRICS currency" typically refers to a hypothetical or proposed unified currency for the BRICS grouping. It's not a single, physical currency currently in use, but rather a concept for a potential future monetary system that some suggest will reduce the dominance of the US dollar in international trade and finance.

Is BRICS currency cooperation about immediate de-dollarization or long-term financial sovereignty? The answer is that BRICS cooperation may include reducing long-term dependence on the dollar as a means of exchange. The dollar is involved in more than half of all trade and 80 percent of all foreign exchange transactions. BRICS currency cooperation aims to gradually reduce the group's dollar dependency, but challenges remain.

The BRICS concept came about not because the dollar is unsuitable as a means of exchange or unit of account, but rather because of the use of the dollar by Washington as a weapon. As I note in my book, Inflated: Money, Debt and the American Dream, the special role of the dollar in US finance allows the US government to impose harsh compliance and reporting requirements on foreign nationals and institutions. The US is an arbitrary hegemon and does not follow reciprocity with other countries.