BRICKS a Pipedream ?

Many people go Gaga over the proposal of BRICKS’s effort to create a common currency to challenge the US dollar's dominance in the world today.

It is difficult to predict with certainty whether the BRICKS economies will be able to outperform the dominance of the US dollar in the financial world.

However, there are a few factors that may be worth considering:

1.    Size of the economies: The BRICKS economies are some of the largest in the world, with a combined GDP of over $20 trillion. If these economies continue to grow at a faster pace than the US economy, they may become more attractive to investors and may be able to challenge the dominance of the US dollar.

2.    Geopolitical factors: The political and economic relationships between the BRICKS countries and the US could play a significant role in determining the future of US dollar dominance. For example, if the BRICKS countries continue to build closer economic ties with each other and reduce their dependence on the US, this could weaken the position of the US dollar.

3.    Financial market developments: If the BRICKS countries continue to develop their financial markets and offer attractive investment opportunities, this could attract more investors away from the US dollar and towards these economies.

Overall, it is difficult to make a definitive prediction about the future of the US dollar dominance and the potential for the BRICKS economies to outperform it.

However, there are several factors that could influence this outcome, and it will be important to keep an eye on developments in the global economy and financial markets.

While it is true that none of the BRICKS countries individually have the prerequisites to challenge the US dollar dominance, the combined economic power and potential of these countries could make them a significant force in the global financial markets.

The BRICKS economies have a combined population of over 3 billion people and a GDP that is expected to surpass that of the G7 nations by 2030.

This means that these economies have significant growth potential and are likely to attract more investment in the future. Moreover, the BRICKS countries have been taking steps to develop their financial markets, increase trade and investment among themselves, and reduce their reliance on the US dollar.

However, it is worth noting that challenging the US dollar's dominance will not be an easy task. The US dollar has been the dominant currency in the global financial system for decades and has several advantages, such as a deep and liquid financial market, a stable political and economic system, and a high degree of trust and confidence from investors around the world.

Therefore, while the BRICKS economies may not be able to challenge the US dollar dominance shortly, they are likely to become increasingly important players in the global financial system over the long term. It will be important for these countries to continue to work together to develop their economies, financial markets, and trade relationships to increase their influence in the global financial system.

Unless they (BRICKS) work on most of those issues individually and collectively. challenging the Dollar's dominance will only be a pipedream.