What will be the effects of BRICS new currency plan on world technology and in addition the Nigerian economy?

by : Engr. Olukayode O. Adedayo Cnse

The BRICS (Brazil, Russia, India, China, and South Africa) countries have been discussing the possibility of creating a new currency for their trade transactions to reduce their dependence on the US dollar. However, there has been no concrete plan put forth as of yet.

Assuming that such a plan is put into action, it is likely to have some effects on the world economy and technology.

If such a payment system were to be established, it could potentially have an impact on the world technology industry by increasing the use of digital currencies and blockchain technology, which could help to streamline transactions and reduce costs. However, the exact impact would depend on the specifics of the payment system and how it is implemented.

Here are a few more potential effects:

• Reduced demand for the US dollar: If the BRICS countries start using a new currency for their trade transactions, it could reduce the demand for the US dollar, which has been the dominant currency for international trade for several decades. This could lead to a weaker US dollar in the long run.

• Increased trade among BRICS countries: A new currency could facilitate easier and cheaper trade among the BRICS countries, leading to an increase in economic cooperation and potentially higher economic growth.

• Potential technological collaborations: With increased economic cooperation among the BRICS countries, there may be more opportunities for technological collaborations and partnerships, leading to advances in various fields.

Regarding the Nigerian economy, it is unclear how exactly a new BRICS currency plan would affect it. Nigeria is not a member of the BRICS group, but it does have significant trade ties with some of these countries, particularly China. A new currency could potentially make trade with these countries easier and cheaper, which could benefit the Nigerian economy. However, any such benefits would depend on the specific details of the currency plan and how it is implemented.

In addition, in terms of the Nigerian economy, any potential impact would also depend on the specifics of the payment system and how it affects Nigeria’s trade relationships with the other BRICS countries. However, Nigeria is not a member of the BRICS and would not be directly involved in any plans related to a new currency or payment system among the BRICS countries.

Submission by: Engr. Olukayode Adedayo