SAUDI ARABIA JOINS BRICS AUGUST 22nd

In summary, the efforts by the BRICS nations to utilize their domestic currencies for global trade could pose long-term effects on the United States' economy. If the petrodollar is no longer the sole currency used to buy oil and bilateral trades occur outside the dollar, it will lead to a decline in the demand for dollars resulting in a possible immense depreciation of the value of the dollar. Countries will diversify their currency reserves away from the dollar which will also weaken the dollar. This will cause gold to serve as a hedge and store of value driving up the gold price, possibly dramatically. Central Banks have been buying gold at the fastest pace in 55 years . They have been front running this coming move of de-dollarization from the BRICS nations and the world. A gold backed digital currency proposal could be also on the table at the BRICS Summit which offers an alternative means of conducting global trade and accumulating reserves. By pegging the currency to gold and other commodities, such as rare-earth elements, BRICS aims to enhance financial autonomy and reduce dependence on the US Dollar. This approach is supported by Alexander Babakov, Deputy Chairman of the State Duma, who highlights the practical and promising nature of digital payments and suggests that the currency will be supported by gold and other commodities. While the official announcement of the BRICS currency is expected during the 15th BRICS Summit in 2023, the timeline for implementation and widespread adoption remains uncertain. The summit serves as a crucial platform for member countries to engage in discussions related to international finance and cooperation. Notably, initiatives like the BRICS Cable project, aimed at improving communication infrastructure among member nations, underscore the group’s commitment to connectivity and highlight their determination to reshape theglobal financial landscape. Leslie Maasdorp, Vice President of the BRICS New Development Bank said, “It’s going to take a very long time for currency movements to take shape so any discussion of alternative currencies is indeed a much more medium and longer-term aspiration.”

“It’s coming. Whether or not it is a gold-backed currency that is introduced in a few weeks or a few months, or next year,”