As more nations seek to reshape the global economy by embracing de-dollarisation, new currencies are on the horizon. But regional and economic groups, like BRICS and the East African Community, are facing hurdles as they push for the adoption of a single currency in order to reduce dollar exchange-rate fluctuations, according to this analysis by TRT World.
Despite the potential benefits, such as increased economic stability, enhanced regional trade, and stronger political ties, the journey toward a unified currency is fraught with obstacles.
One of the most prominent challenges is the economic divergence among member states. The BRICS nations exhibit vast differences in their economic structures, growth rates, levels of development, and economic policies. For instance, while China has a robust manufacturing sector, India has a large service-oriented economy. Similarly, Russia relies heavily on energy exports, while Brazil’s economy is more diverse but currently struggling. These disparities make it difficult to establish a common monetary policy that suits all member nations.
