BRICS Gold-Backed Common Currency To Be Introduced In August
The BRICS countries could soon launch a viable alternative to the U.S. dollar, Russia confirmed this week.
- "Brazil, Russia, India, China and South Africa, a coalition of nations going by the moniker BRICS, is set to introduce a new currency backed by gold, Russian English news channel RT reported."
- An official announcement in this regard will be made at the bloc's summit in Johannesburg, South Africa, in August.
- "Willem MiddelKoop, a former journalist, tweeted that 41 countries have applied for BRICS-membership."
“A new international transaction unit, backed by gold, sounds like good money – and it could be, first and foremost, a major challenge to the US dollar's hegemony,” said economist Thorsten Polleit.
- "The economist said for making the new currency as good as gold and a truly sound currency, it must be convertible into gold on demand. But whether this is what the BRICS Countries have in a mind is a question."
"Using gold as the unit of account would be a gamechanger and lead to a sharp devaluation of many fiat currencies including the BRICS fiat currencies, vis-à-vis gold. It could make goods prices priced in fiat currencies explode and cause a shock to the global fiat money system" he added.
