What did the BRICS countries do to destroy dollar?

American financial power, in an era of great power competition, is in a critical position, amid expectations of a decline in the dominance of the dollar

US sanctions against Moscow, in response to Russia's invasion of Ukraine, have prompted some countries to reduce their dependence on the dollar, threatening a decline in its hegemony.

If the currency system becomes multipolar, American monetary privileges will recede, and the global economic influence of the United States will weaken, as well as its ability to use the dollar.

The dollar is still the currency of choice, for governments, companies and financial institutions, to conduct trade and investment, but cross-border exchange in alternative currencies is progressing.

Oil is one of the world's leading export products, and the dollar is used to pay for oil as an important component of maintaining the dollar's role as the default currency for international payments, but China, Russia and countries in the Middle East and South Asia are trying to move away from settling oil in dollars.

Alternative currencies to the dollar

   China and Russia promote their national currencies in the oil trade. China and Saudi Arabia bill oil in the Chinese currency, the renminbi, and Russia and India are considering using the United Arab Emirates' currency, the dirham, to settle oil deals between them. Russia and Iran intend to use a gold-backed stable currency for international payments.

If oil producers insist on settling oil transactions in Chinese renminbi, Russian rubles, Indian rupees, UAE dirhams, or stable currencies backed by a non-dollar currency, the role of the dollar will decrease.

Destroy the dollar

  According to the American magazine "Foreign Affairs", Brazil, Russia, India, China and South Africa, known as the BRICS countries, have discussed joint efforts to destroy the dollar. Together, these countries have considered issuing a common reserve currency to overtake the dollar and other major Western currencies.

The shared currency is based on one of the "BRICS" currencies, and will serve as an alternative to the IMF's currencies, although little progress has been made, since the move was announced in June 2022. However, China, India and Russia agreed to expand trade and strengthen their national currencies in international payments at the September summit. Shanghai Cooperation Organization.