The BRICS nations, which make up one-third of global economic output and include Brazil, Russia, India, China, and South Africa, are considering introducing a common currency to challenge the dominance of the U.S. dollar in global trade. This move is aimed at establishing a more accessible and fair medium for international trade.

While creating a unified currency typically requires the elimination of local currencies, the BRICS nations' current endeavor seems primarily aimed at designing a currency unit exclusively for settling cross-border trade, rather than replacing local currencies.

As the trend towards increased local currency settlements accelerates, the consequences for the world economy, and particularly the standing of the U.S. dollar, promise to be profound.