Josh Sullivan, a former economic advisor for the White House, believes that a new BRICS-issued currency may have the ability to lessen the power of the US Dollar regarding international trade.
BRICS (Brazil, Russia, India, China, and South Africa) is an acronym for five leading economies. In an article published on Foreign Policy, Sullivan discusses the potential that a new currency used by these nations could belittle the current power that the US Dollar has through de-dollarization, meaning a reduction on the reliance of the dollar as a reserve currency, medium of exchange or a unit of account.
“Is it realistic to imagine the BRICS using only the bric for trade? Yes.” Sullivan refers to the currency as ‘the bric’, which he believes could be the beginning of the end of the dominance held by the US Dollar. The power of the bric lies in the fact that the BRICS outweigh not only the United States but all other G-7 countries when referring to GDP.
“The BRICS would also be poised to achieve a level of self-sufficiency in international trade that has eluded the world’s other currency unions. Because a BRICS currency union—unlike any before it—would not be among countries united by shared territorial borders, its members would likely be able to produce a wider range of goods than any existing monetary union.“
“The dollar’s reign isn’t likely to end overnight – but a bric would begin the slow erosion of its dominance,” says Sullivan.