If the BRICS introduced a truly convertible in demand gold certificate (as Federal Reserve notes were when initially introduced), it would be a global game changer and spell the end of the seigniorage that Uncle Sam has enjoyed by cheating (inflating) the currency used to settle international trade.
Given the currency controls currently enforced by the BRICS most significant members, I doubt they will create a truly convertible currency. They can create a unit of account for settling their own trade, and if the Saudis jump on board with allowing the BRICS to purchase oil with it you’ll see a decline in the value of the dollar and the trillions we’ve printed will start making its way back home.
—”Given the currency controls currently enforced by the BRICS most significant members,”
Currency controls?
That is being very diplomatic and polite on the subject.