This topic may be old news already but it's worth noting how the BRICS pay yet to be fully developed and integrated into the currency system will be an alternative to the dollar which will of course lead to a more complex multi currency market.
This may be a significant shift that acts as a safety net and prevents the Naira from free fall scenarios.
However, the truth remains that the true stability of the Naira is highly dependent on oil output and domestic production capacity, rather than digital payment systems being introduced.
How does the BRICS Pay digital currency affect the current market, mostly as it partains to the Nigerian market?
BRICS nations have come up with different policies but they hardly implement them. The reason might be that some of the member countries are still close allies or business partners with the US. This has caused a conflict of interest within the organization.
The dollar is the dominant currency in the international market. Sometimes the dollars become scarce and this might disrupt economic activities. The BRICS currency would serve as an alternative. This would help reduce the dependence on dollars in global trade. Another advantage could be reduced transaction fees. Some payment middlemen, like SWIFT, charge transaction fees. A BRICS currency could bypass these intermediaries, thereby making transaction fees cheaper.
Like you rightly pointed out, the stability of the Naira depends more on the management of the Nigerian economy by politicians and not any global currency.
