New BRICS Member Threatens the Dollar’s Reign, According to Former US Congressman
Former US Congressman Ron Paul has voiced concerns about a newcomer in the BRICS economic alliance challenging the US dollar's dominance.
BRICS, originally formed to challenge US economic and political supremacy, recently admitted Saudi Arabia, which Ron Paul sees as a potential threat to the dollar’s influence.
The petrodollar system has propped up the US dollar’s status as a global reserve currency, where oil exports are paid in US dollars. Saudi Arabia’s agreement with Brazil to use the Brazilian currency for oil transactions instead of dollars has raised alarms about the dollar’s future.
Saudi Arabia, the world’s second-largest oil producer, has an output of over 10.8 million barrels per day.
Recent reports indicate BRICS is expanding, welcoming six new members, including Saudi Arabia, Iran, Ethiopia, Egypt, Argentina, and the United Arab Emirates, with more countries considering joining this economic alliance. Concerns about the US’s growing national debt are driving the search for dollar alternatives.
Additionally, the politicization of the dollar is affecting how other nations view it. Western sanctions in March 2022 froze around $300 billion in Russian reserves and cut off Russian banks from SWIFT, a cross-border payment system dominated by the dollar and euro.
Ron Paul believes this has fueled resentment and hastened the rejection of the dollar as a reserve currency, leading to a backlash against US foreign policy leadership.