BRICS Expansion Plan And Launching Of BRICS Currency To Decrease Influence Of US Dollar: Gaurav Gupta 

The BRICS group of emerging economies is planning to expand its membership and launch a new currency in an effort to decrease the influence of the US dollar in the global economy. The group currently consists of Brazil, Russia, India, China, and South Africa, and it has been growing in economic and political importance in recent years.

The expansion of BRICS would be a major blow to the US dollar, which is currently the world's reserve currency. The US dollar is used in most international transactions, and it is also the currency of choice for many countries when they hold foreign reserves besides BRICS would enhance its global influence, creating a more balanced multipolar world order by including other emerging economies. This expansion could include countries like Indonesia, Turkey, Mexico, or others, thereby ensuring a more representative and inclusive platform for economic cooperation. If BRICS were to launch its own currency, it would provide an alternative to the US dollar and could help to reduce its dominance in the global economy.

There are a number of reasons why there is a need for a new global currency. The US dollar has been losing value in recent years, and it is becoming increasingly volatile. This has made it difficult for countries to plan their economies and has also made it more difficult for businesses to make international transactions.
The Russia-Ukraine war has also highlighted the need for a new global currency. The US and its allies have imposed sanctions on Russia, which has made it difficult for Russia to trade with other countries. This has had a negative impact on the global economy, and it has also shown the vulnerability of the US dollar-based system.

The launch of a BRICS currency would be a major step towards a more multipolar world economy. It would give countries more options when it comes to their currency reserves, and it would also make it more difficult for the US to use its financial power to exert political pressure on other countries. The US dollar is the world's reserve currency. This means that it is the currency that is most widely used for international trade and investment. The US dollar is also the currency that is used to price many commodities, such as oil and gold. The BRICS countries are trying to reduce the influence of the US dollar by increasing their use of their own currencies and by launching a common currency. The BRICS countries have not yet announced a timeline for the expansion of the group or the launch of a new currency. However, the fact that they are even considering these steps is a sign that the US dollar's dominance is under threat.

Here are some of the benefits of the BRICS Expansion plan and launching of BRICS currency:

* Increased economic cooperation: The BRICS countries are working together to increase their economic cooperation. This could lead to increased trade, investment, and development.

* Reduced reliance on the US dollar: The BRICS countries are trying to reduce their reliance on the US dollar. This could give them more control over their own economies and reduce their vulnerability to US economic policies.

* Increased influence in the global economy: The BRICS countries are working to increase their influence in the global economy. This could lead to increased trade, investment, and development for these countries.

When we look at the broader aspect the BRICS Expansion plan and launching of a common currency are ambitious projects. However, they could have a significant impact on the global economy. If successful, these projects could lead to increased economic cooperation, reduced reliance on the US dollar, and increased influence for the BRICS countries in the global economy.

Here are some ways in which India could benefit from the expansion of BRICS and the launch of a new BRICS currency:

* Reduced dependence on the US dollar: India is currently heavily dependent on the US dollar for its foreign trade and currency reserves. This makes India vulnerable to fluctuations in the value of the dollar, which can have a negative impact on India's economy. A BRICS currency would provide India with an alternative to the dollar, which would reduce its dependence on the US and make its economy more stable.

* Increased trade and investment: A BRICS currency would make it easier for India to trade with other BRICS countries. This could lead to increased trade and investment between India and other BRICS countries, which would boost India's economy.

* Reduced political pressure from the US: The US has a history of using its financial power to exert political pressure on other countries. For example, the US has imposed sanctions on countries that do not cooperate with its sanctions on Iran. A BRICS currency would reduce India's vulnerability to this type of political pressure from the US.

Overall, the expansion of BRICS and the launch of a new BRICS currency could have a number of positive benefits for India. These benefits include reduced dependence on the US dollar, increased trade and investment, and reduced political pressure from the US.

Here are some additional details about how India could benefit from a BRICS currency:

* Reduced transaction costs: Using a BRICS currency for trade between BRICS countries would reduce transaction costs, as there would be no need to convert currencies. This would make trade between BRICS countries more efficient and would boost economic growth.

* Increased financial stability: A BRICS currency would provide a more stable alternative to the US dollar, which is often volatile. This would reduce the risk of financial instability in India and other BRICS countries.

* Enhanced economic cooperation: A BRICS currency would help to promote economic cooperation between BRICS countries. This could lead to the development of new joint projects and initiatives, which would boost economic growth in all BRICS countries.

Conclusion:

An expanded BRICS membership and the launch of a common currency would provide numerous advantages for India, including enhanced trade opportunities, reduced dependence on the US dollar, reduced transaction costs and strengthened regional cooperation. By decreasing the influence of the US dollar and promoting greater economic cooperation among emerging economies, the BRICS bloc has the potential to reshape the global financial landscape. India, as an active participant in BRICS, stands to gain from these developments and should actively pursue this expansion and currency launch for its long-term economic and geopolitical interests.

(Author: Gaurav Gupta is a Geopolitical Expert, Hony. Secretary Jammu Club Jammu & Former Secretary General CCI Jammu.)