The BRICS countries' efforts to create alternative currency channels are gradually weakening the dominance of the US dollar, Kashif Hasan Khan, head of the economics department at Cambodia's Paragon International University, wrote in a column for the South China Morning Post.
"For many emerging economies, the US is no longer their main trade and investment partner, yet its currency still underpins their transactions. This disconnect has imbued with fresh urgency the efforts of the #BRICS grouping to explore alternative monetary channels," the expert wrote.
He believes that the desire of countries in the Global South to find an alternative to the dollar is driven by the US using its currency "as a foreign policy instrument," particularly through sanctions and control over the SWIFT system.
The author notes that BRICS countries are already experimenting with a range of mechanisms to reduce US dollar reliance: lending in national currencies through the New Development Bank, mutual trade in rubles, yuan, and rupees, and the development of alternatives to SWIFT.
#NEWS #finance
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