BRICS is pulling every option up its sleeve to challenge the US dollar’s hegemony in the global financial order. From settling trade in local currencies to diversifying their central bank reserves with gold and advancing the de-dollarization agenda, they’ve been doing it all. The formation of a BRICS currency was also on the cards but the details of the development remain little known.
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However, veteran banker and Jio Financial Services Chairman KV Kamath shed light on the little-known yet powerful initiative. Kamath said during an interview with CNBC-TV18 that a BRICS currency reserve will soon shake up the Western financial world. He explained that the development could challenge the IMF and create a parallel global economy dampening the US hegemony.
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BRICS Currency Reserve to Challenge the US, IMF, & Western Allies
The BRICS currency reserve, which Kamath spoke about still remains largely unknown to the public. He explained during the interview that the reserve could operate parallel to the IMF and challenge the dominance of traditional financial institutions. If the development becomes a reality, the US will find it hard to import the dollar to developing countries.
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“There is also the BRICS currency reserve which is basically a parallel IMF. It’s not in the public domain, but it is there. It doesn’t have an office, but it runs out of readiness to meet the needs of the BRICS countries if ever they have a need where they have a crisis,” said Kamath.
Kamath emphasized that “When you’re united, there is enormous strength,” he stressed about the bloc’s unity. The New Development Bank (NDB) commonly called the BRICS bank has been working on the formation of a new currency for two years. The details of the development have been under wraps and rarely made public. It is not known if they plan to launch the currency any time soon.
