The addition of six new countries to the Brics bloc - including some of the world’s largest oil exporters - is likely to expedite the decline in the US dollar’s prominence in global trade, according to a Dubai financial analyst.
Saudi Arabia, the UAE, Egypt, Iran, Argentina and Ethiopia have all been accepted as members from 2024.
While a base currency for the new, larger, group is not a “feasible solution” Vijay Valecha, chief investment officer at Century Financial, said a gold-backed currency could act as a potential challenger to the US greenback.
“The most logical thing would be for it to be a gold-backed currency. As the precious metal is in fixed supply, it could regulate the currency,” he said.
29 авг 2023
