This idea comes from Vladimir Putin.
I don’t think that it was just Putin who thought this up, it’s an idea that has been kicked around for some time. The actions of the USA following the Ukraine war have accelerated the idea.
Who is willing to go along with him these days?
Countries that the USA is waging economic warfare against. The USA has done more than anyone to push for an alternative world reserve currency. Also countries like China who are looking to replace the USA on the world stage, so they will be keen to undermine the dollar’s strength.
That’s like going along with Adolf Hitler! Hmmmmm, I wonder Putin’s proposed basket of currencies includes the Russian ruble, which is known for being one of the most unstable of all.
The Ruble is one of the stronger currencies the world has at the moment:
Russia’s Ruble is the strongest currency in the world this year
The USA dollar has recently rallied but this is (I suspect) a result of the Japanese going for massive QE and throwing the yen under the bus.
The countries in this BRICS group are all considered developing countries. While a basket of currencies is less volatile than any single currency due to the diversification, wouldn’t the currencies of developed countries be more suitable for a reserve currency?
In effect most ‘developed’ world countries are tied closely to the dollar and suffer many of the economic problems of the USA - runaway inflation, slow growth and mountains of unpayable debt.
And what’s the objection to using a basket of currencies as a reserve currency instead of just one currency?
It will stop another dollar empire which has given the USA so many advantages at the expense of others. It should also help stop the weaponizing of a currency. I’m all for competition and currencies are like anything else, if you have a monopoly you will misuse it.