BRIC Currency Trade Strategy

BRIC Currency Strategy

With confidence in the U.S. dollar waining among a number of countries, Brazil, Russia, India and China, or the BRIC countries are looking for way to increase trade using their own currencies rather than the dollar.

The strategy is to decrease dependence on the U.S. dollar, which is extremely flawed and has a dismal future because of the Federal Reserve and monetary policy of the U.S., which makes it hard to have much confidence in the greenback in the years ahead.

Russia has suggested using a mix of regional currencies as a way to protect against the U.S. dollar and reduce risk in relationship to the volatility of the dollar.

China has experimented with allowing companies located in the Guangdong province to do business using the reminbi with members of the Association of Southeast Asian Nations, Macau and Hong Kong.