How would a new BRICS Currency affect the dollar?
Times of Bennett | Updated: Feb 09, 2026 13:17
The Reserve Bank of
The central bank has recommended the Union government to include this proposal in the agenda for the BRICS summit to be held in India later this year, according to two anonymous sources quoted by Reuters.
The proposal comes amid rising geopolitical tensions and an India-US trade deal still in limbo. The US has previously opposed any attempts to move away from the dollar as the key currency for international trade and other payments.
US President Donald Trump has also threatened BRICS nations - Brazil,
There is an actual experiment going on in Russia for a new currency called the Unit. The Unit’s 40% value comes from physical gold and 60% from the currencies of the BRICS nations Brazil, Russia , India, China and South Africa.
There is no currency in recent times whose value is backed by so much in Gold, which could be the reason why these large economies in the last five years are hoarding up on gold and reducing their dependency on US treasury bonds.
Because China has rare earths, Latin America has silver which the world requires, India has the largest consumer base(Population),South Africa has platinum and Russia has so much oil it can provide to all of these BRICS nations alone.
The five founding members of the alliance are running pilot projects for developing their digital currencies. India's
(The writer is a second-year BA Mass Communication student, who likes immersing herself in reading Geopolitical Affairs. She loves to watch movies on socio-political issues and highlight marginalized voices in the society.)
