While inflation in the U.S and Europe has risen astronomically in the past few months, Russia and the other members of the BRICS countries has revealed that the five key emerging economies are currently creating a new international reserve currency that is expected to rival the U.S. Dollar.

Data from consumer prices show that costs of goods and services are at an all-time high. Many economic observers say that Western countries will be/are already in recession. Politicians in the United States and the United Kingdom have spent the last months blaming the red-hot inflation on a number of things which include Russia’s invasion of Ukraine and COVID-19.

At the end of June, members of the BRICS nations met to discuss international affairs at the 14th BRICS summit. During the summit, President Putin of Russia announced that the economies of the five members – Brazil, Russia, India, China, South Africa, have planned to release a new global reserve currency. Additionally, Saudi Arabia, Turkey and Egypt are debating to join the group. Market observers believe that the new BRICS currency is a strong attempt to address the global hegemony of the Dollar and IMF.

The news of the new reserve currency might have come as a suprise to some but there has already been news about the BRICS member countries trying to undermine the dollar for some time now. A Global Times report at the end of May revealed that the member nations were being urged to review their dependence on the Dollar.

Russia and Putin have been saying for years that the U.S. domination of the international financial market has been dying. Putin speaking at this year’s St. Petersburg International Economic Forum stated that the domestic socio-economic problems that have worsened in industrialized nations are weakening the historic dominance of the West. He also charged his listeners to be prepared for any development, however unfavourable it might be.

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