BRICS, composed of Brazil, Russia, India, China, and South Africa, aims to enhance economic cooperation among its member nations and increase their global influence. One of the potential strategies for promoting a unified currency or common monetary system is the creation of alternative financial institutions and frameworks, such as the New Development Bank. By providing funding in BRICS currencies and promoting trade agreements that favor the use of these currencies over the US dollar, member states could gradually decrease dependence on the dollar. If successful, this could lead to wider acceptance of a BRICS currency among non-member nations, effectively fostering a multipolar global economic environment and prompting countries to consider joining this alternative financial model.
In the context of Papua New Guinea, an economic shift toward a BRICS-aligned currency could gain traction if the US dollar were to collapse. The dollar is a dominant currency globally; a collapse could destabilize economies reliant on it, including Papua New Guinea's, which engages in trade with both Western nations and BRICS countries. In such a scenario, if BRICS nations offered attractive trade deals or investment opportunities in their currencies, Papua New Guinea might find it beneficial to explore alternatives to the dollar, potentially leading to an increased use of BRICS currency. This shift would not only mitigate the impact of a dollar crisis but could also enhance Papua New Guinea's economic relations with BRICS countries, fostering growth through diversified partnerships.