Emerging economies are pushing to end the dollar's dominance. But what's the alternative?
Across the developing world, many countries are fed up with America’s dominance of the global financial system — and especially the power of the dollar
ABUJA, Nigeria — Business has vanished at Kingsley Odafe’s clothing shop in Nigeria’s capital, forcing him to lay off three employees.
One culprit for his troubles stands out: The U.S. dollar’s strength against the Nigerian currency, the naira, has pushed the price of garments and other foreign goods beyond the reach of local consumers. A bag of imported clothes costs three times what it did two years ago. The price these days is running around 350,000 naira, or $450.
“There are no sales anymore because people have to eat first before thinking of buying clothes," Odafe said.
Across the developing world, many countries are fed up with America’s dominance of the global financial system — especially the power of the dollar. They will air their grievances next week as the BRICS bloc of Brazil, Russia, India, China and South Africa meet with other emerging market countries in Johannesburg, South Africa.
But griping about King Dollar is easier than actually deposing the de facto world currency.
The dollar is by far the most-used currency in global business and has shrugged off past challenges to its preeminence.
Despite repeated talk of the BRICS countries rolling out their own currency, no concrete proposals have emerged in the run-up to the summit starting Tuesday. Emerging economies have, however, discussed expanding trade in their own currencies to reduce their reliance on the buck.
At a meeting of BRICS foreign ministers in June, South Africa's Naledi Pandor said the bloc’s New Development Bank will seek alternatives “to the current internationally traded currencies" — a
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