Many countries are ditching the US dollar and moving towards other currencies. Some of the countries that have made this shift include India, Iran, Saudi Arabia, Brazil, China and Russia. These countries are concerned about the dominance of the US dollar over the global financial system and are seeking alternatives. One of the reasons for this shift is the global de-dollarization campaign.
This shift is also evident in the sports industry, where the sale of sports teams has reached an all-time high, with the most expensive sale being that of the Washington Commanders for $6.1 billion in April 2023. The high values of sports franchises are driven by factors such as media deals, industry monopoly, league benefits, and favorable taxes, as well as the global audience and strong broadcast rights deals.
Recently the BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, is reportedly exploring the possibility of introducing a new form of currency. The new currency, which is expected to reduce the world’s dependence on the US dollar and the euro, would be secured by gold and other commodities like rare-earth elements.
The proposal for the innovative currency is expected to be presented at the upcoming BRICS leaders’ summit in South Africa. The currency could benefit China and other BRICS members, as the Chinese yuan has already replaced the US dollar as the most traded currency in Russia. The plan has been in motion since 2019, and members of the bloc have been discussing the creation of a new digital currency for a unified payments system.
Reserve Bank of India recently has allowed banks of nations like Russia, Bangladesh, Malaysia, Botswana, Germany, Israel, Guyana, New Zealand, Oman, Singapore, Tanzania, Uganda, Seychelles and the United Kingdom to trade in rupees. It is expected that banks of more nations will soon join.