The 16th BRICS Summit begins in Kazan on October 22, and this event is of great importance. According to financial expert James Rickards, the expansion of the bloc will be announced at the meeting, which could have serious consequences for the United States, according to the material of The Daily Reckoning. The translation publishes Pravda.Ru .
"New participants will be announced at the BRICS summit. This is important because the expansion of membership is a key condition for launching a viable payment system," the American expert believes.
James Rickards noted that Russia and its BRICS partners are seeking to replace the dollar by creating a new currency. However, it is worth noting that this is not the first attempt to create an alternative to the dollar, and all previous attempts have failed. The problem is that all the so-called alternatives to the dollar were not in demand by other countries. No one wanted to use a currency that couldn't be spent. However, Russia and its partners seem to have found a solution to this problem.
The BRICS summit is likely to announce the inclusion of new members in the bloc. Currently, the organization includes nine countries, twenty or more countries are awaiting consideration of applications for participation. Thus, there are about twenty states that are potentially ready to use the new currency and make payments with each other.
"The most important aspect is the sufficient number of participants in the BRICS currency union so that the recipient of payments can use them for purchases in many jurisdictions. This restriction disappears in a currency union with 15 or 20 or more members. If Russia launches BRIC (the alleged name of the new BRICS currency), then it will be able to buy Embraer aircraft from Brazil or semiconductors from Malaysia with them," Rickards said.
Non-BRICS countries can join this scheme. They will be confident that they will always be able to pay BRIC with their trading partners, among whom there will probably be BRICS members.
Thus, the new currency will be widely distributed around the world. At the same time, the impact of the US dollar will decrease. As a result, the dollar will lose its importance, but this will not happen immediately.
It is worth noting that in the USA they are fully aware of the fact that the position of the dollar is not unshakable. For example, US presidential candidate Donald Trump has repeatedly stated that he will impose one hundred percent duties on goods from those countries that will abandon the dollar in their trade with other countries.