What Would Happen If BRICS Launched Its Own Currency and How Much Would the Dollar Weaken?

Source: ABP News | Original Published At: 2026-01-18 09:05:55 UTC

Key Points

• BRICS countries (Brazil, Russia, India, China, South Africa) are exploring a shared currency to reduce reliance on the US dollar and Western financial systems.
• A BRICS currency could enable cheaper cross-border transactions, boost intra-bloc trade, and reduce foreign exchange reserve pressures.
• Experts suggest the dollar wouldn't collapse immediately, but its dominance could gradually erode if BRICS nations adopt the new currency systematically.
• US concerns stem from potential challenges to dollar hegemony, which underpins American economic and geopolitical influence.
• Trump's protectionist policies and tariffs have accelerated discussions among non-Western nations to create alternative financial frameworks.