BRICS summit to reset global currency?

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• The BRICS summit in Kazan, Russia, is expected to mark a major step forward in global currency resettlement.
• The move is likely to be tumultuous and could begin with a decline in US Treasury yields and an increase in gold hoarding in early 2025.

Global currency reset

The next one BRICS summit in Kazan, Russia, on October 22-24 is expected to be an important step forward in the resettlement of global currency. This view is shared by Jon Forrest Little, founder and director of content at the Money Academy, who believes that BRICS central banks are actively preparing for this transition, as evidenced by their gold reserves that are constantly growing. Not many expect that the movement will tend to be violent.

Expansionary and De-Dollarization Movements

The summit is likely to be a big event, with confirmation from Russia’s Deputy Foreign Minister Sergei Ryabkov that 30 countries will be present, including potential new members such as Turkey and Thailand. BRICS was founded in 2006 by Brazil, Russia, India, China and South Africa and has expanded significantly in recent years to include Iran, Egypt, Ethiopia, the United Arab Emirates and possibly Saudi Arabia.

Introducing a new currency

Driving this trend is a growing desire among the BRICS countries to reduce their dependence on the US dollar. Factors contributing to this trend of dollarization include the weaponization of the dollar through sanctions, concerns about the US debt, and a broader push for financial self-regulation. More emphasis is placed on commercial transactions in national currencies and the development of new instruments for an international financial system.

Introduction and implications

At the heart of this conversation is the possible news about a new currency called the ‘Aonad‘. The initiative, which aims to provide an alternative to dollar-dominated global finance, was confirmed in September by Andrey Mikhailishin, head of the financial services task force of the BRICS Business Council. The ‘Unity’, according to Little, is designed to promote “a new unified international trade” and could be linked to a combination of gold and a basket of BRICS national currencies.

Outcomes and timetable

Although the roof perhaps presented a detailed roadmap for this project, the full impact on the global monetary system is expected to emerge gradually, possibly starting as early as 2025. Few expect the position of Treasury the US declines during this period, that gold accumulation and the existing financial structure will increase unsustainable growth due to the problems with commercial real estate. He is planning a major “reset” on the world stage after these events.

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