The notion was the the BRICS would rival and supplant the traditional Western global economy and the US Dollar as the default currency of the world.
For a brief moment in time, it did look as if it would be possible. But, it’s probably not, now. Russia has become ensnared in a recession, China’s market and currency recently took huge downturns, India’s accelerated growth seems to have slowed, and now, there this from Brazil.
SAO PAULO (AP) — Brazil’s financial markets has fallen in the aftermath of credit agency Standard & Poor’s downgrading the country’s sovereign debt to “junk” status.
The Brazilian real fell 2 percent to 3.88 per U.S. dollar by early Thursday afternoon and it would have dropped even further if the Central Bank hadn’t intervened by selling some $1.5 billion on the spot market.
The benchmark Bovespa stock index was down 1.24 percent. ……
Oh, yeh, they’re in a recession, as well.
But, that’s not where the bad news ends for Brazil. They’re getting a double whammy!
source for graphs is Trading Economics
Given the way they calculate inflation, this is no small thing! They’re in huge trouble!
I don’t see this BRICS thing as particularly helpful to any of the nations which belong to it. And, I don’t see it replacing the US Dollar anytime soon.