The potential effects of releasing a BRICS bloc currency in exchange for the dollar have been discussed by economist and best-selling writer Jim Rickards. According to Rickards, the “BRIC” (the name he gives the BRICS currency) will be used to devalue the dollar by maintaining commodity prices. It will be anchored to a weight of gold but will not be redeemable or supported by it.

Jim Rickards speculates that the BRICS Currency Will Be Anchored to the Weight of gold.

Best-selling author and economist Jim Rickards has expressed concern about his idea of a possible BRICS (Brazil, Russia, India, China, and South Africa) bloc currency and how it may be used to control the value of the dollar.

According to Rickards, the “bric”—the name he gives the BRICS currency—will be fixed to a typical weight in gold but not be backed by it. This is due to the fact that the BRICS countries will profit from the gold markets without impeding their ability to control the BRICS-dollar peg.

This will also enable its price to rise if the U.S. dollar is affected by inflation and depreciation, clearly leading to the demise of the greenback. Regarding this, Rickards said:

It’s a strategy for devaluing the dollar. Both cash and gold are not necessary. Your money will be worth more as a result of how you tied it—not to dollars but to gold—when dollar inflation starts to rise. You simply need to be smart enough to tether your currency to gold.

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Disrupting Supply Chains

According to Rickards, interfering with global commodity supply chains would be another way to accelerate the devaluation of the U.S. currency. He used the ending of the Russia-Ukraine grain agreement in the Black Sea as an example, noting that grain prices increased by 10% immediately following the break.

On this, Rickards explained:

As a result, one approach to making your currency (the U.S. dollar) less valuable and mine (the BRICS member country of Russia) more valuable would be to tighten the supply chain and raise the price of items like grain, oil, and gasoline.

Sergey Lavrov, the foreign minister of Russia, said in January that the EU would talk about a common currency in August. Anil Sooklal, the South African consul in charge of BRICS relations, recently stated that this subject would not be covered at the upcoming summit.


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