𝐓𝐡𝐞 𝐈𝐧𝐯𝐢𝐬𝐢𝐛𝐥𝐞 𝐇𝐚𝐧𝐝

For as long as we can remember, the US dollar has been the official trading currency of the world. But is their dominant reign coming to an end at last? Is their hegemony under the threat of being taken over by the BRICS?

After facing economic sanctions from the West over the invasion of Ukraine, Russia, the brains behind this idea have mulled creating a new currency to facilitate trade. This movement of de-dollarisation has received an uproar and this notion obtained further impetus when Alexander Babakov, deputy chairman of the State Duma, was quoted as saying that this composition will be based on inducting new monetary ties, established on a strategy that does not defend the US dollar or Euro, but rather forms a new currency, competent of benefiting shared objectives.

Not only will Russia prosper from this immense change, but so will India. The creation of a common currency will enhance and expand cooperation on a beneficial basis, increase the volume of bilateral trade, strengthen investments and immensely improve technological ties whilst ensuring a path to take India one step ahead in the globalization game.

However, this will tremendously affect the oil-based economies, which will fall into a pit of trouble and the dollar losing dominance will be mutually exclusive in terms of effects on their respective nations.

In recent times, the U.S. dollar has strengthened against many world currencies due to the safe haven effect and rising inflation. This has happened even as the price of oil skyrocketed, but if the trade is no longer dependent on the dollar, one cannot begin to imagine the number of national reserves currently quoted in US dollars that will be dumped back into the market because keeping the dollar as a reserve to keep their inflation in check will no longer be necessary and this is bad news for the US, as it may lead to inflationary trouble and all remaining countries that hold on to the dollar since their reserves will lose major value. Not to mention the oil producers and purchasers that trade in USD may lose business.

– Sidra Memon