https://sputnikglobe.com/20230711/dethroning-the-dollar-will-take-more-than-minting-new-brics-currency-1111813027.html
'Dethroning the Dollar' Will Take More Than Minting New BRICS Currency
'Dethroning the Dollar' Will Take More Than Minting New BRICS Currency
Sputnik International
With BRICS expected to expand soon, moves by the group of leading emerging economies to create a gold-backed international currency have increased Western fears of de-dollarization and a move to bilateral payment settlements.
2023-07-11T18:19+0000
2023-07-11T18:19+0000
2023-08-04T10:34+0000
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Usurping the US dollar as the dominant reserve and trade currency is more complicated than creating an alternative, says an expert on south-south relations.The 15th summit of the BRICS group — Brazil, Russia, India, China and South Africa — in Johannesburg in late August will discuss proposals for a new gold-backed common currency.Leading developing nations — including BRICS membership candidate Saudi Arabia — have already begun conducting bilateral trade in national currencies rather than the US dollar, crucially including crude oil sales.Mohammed Saqib, secretary-general of the India-China Economic and Cultural Council, told Sputnik that it would take more than just setting up a new currency to "dethrone" the dollar.He said the attractiveness of BRICS for prospective new members such as Algeria, Argentina, Nigeria and Nicaragua was the "abundant resources and technology" its members possess and its history of investment and financial support in Africa.The commentator called de-dollarization "a dream of many countries" which they have harboured for decades — and now BRICS is "making it come true.""Minimizing dependence on the US dollar and encouraging economic autonomy through de-dollarization has been a need felt by the global south," Saqib noted. "Business away from the dollar will effectively stabilize national economies, minimize risks associated with exchange rates, decrease transaction expenses, and foster regional unity."But he cautioned that shifting to a new currency would need close coordination of the BRICS members' financial systems, and depended on many factors including "trust, economic fundamentals, global acceptance, financial infrastructure, and geopolitical considerations."With six weeks to go until the BRICS summit, US-dominated military alliance NATO is meeting in the Lithuanian capital Vilnius to decide how next to escalate its proxy conflict with Russia in Ukraine.The business ambassador said the two international organisations were as different as night and day.
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15th brics summit in johannesburg to discuss a new gold-backed common currency, de-dollarization as emerging and oil-producing economies move to trades in national currencies, can a brics currency dethrone the dollar as the world's main reserve and trade currency?
15th brics summit in johannesburg to discuss a new gold-backed common currency, de-dollarization as emerging and oil-producing economies move to trades in national currencies, can a brics currency dethrone the dollar as the world's main reserve and trade currency?
'Dethroning the Dollar' Will Take More Than Minting New BRICS Currency
18:19 GMT 11.07.2023 (Updated: 10:34 GMT 04.08.2023) With BRICS expected to expand soon, moves by the group of leading emerging economies to create a gold-backed international currency have increased Western fears of de-dollarization and a move to bilateral payment settlements.
Usurping the US dollar as the dominant reserve and trade currency is more complicated than creating an alternative, says an expert on south-south relations.
The 15th summit of the BRICS group — Brazil, Russia, India, China and South Africa — in
Johannesburg in late August will discuss proposals for a new gold-backed common currency.
Leading developing nations — including BRICS membership candidate Saudi Arabia — have already begun conducting bilateral trade in national currencies rather than the US dollar, crucially including
crude oil sales.
Mohammed Saqib, secretary-general of the India-China Economic and Cultural Council, told Sputnik that it would take more than just setting up a new currency to "dethrone" the dollar.
He said the attractiveness of BRICS for prospective new members such as Algeria, Argentina, Nigeria and Nicaragua was the "abundant resources and technology" its members possess and its history of investment and financial support in Africa.
"BRICS offers relations that provide new export markets and avenues for knowledge-sharing and training programs to empower local resources and strengthen communities," Saqib said, but "more importantly, BRICS nations advocate for reform of international financial institutions and promote South-South cooperation for unified growth."
The commentator called
de-dollarization "a dream of many countries" which they have harboured for decades — and now BRICS is "making it come true."
"Minimizing dependence on the US dollar and encouraging economic autonomy through de-dollarization has been a need felt by the global south," Saqib noted. "Business away from the dollar will effectively stabilize national economies, minimize risks associated with exchange rates, decrease transaction expenses, and foster regional unity."
But he cautioned that shifting to a new currency would need close coordination of the BRICS members' financial systems, and depended on many factors including "trust, economic fundamentals, global acceptance, financial infrastructure, and geopolitical considerations."
"Dethroning the US dollar's supremacy is a complex task that requires a comprehensive and coordinated effort...The process of the new currency to diversify the monetary landscape has started, it might take time, but the beginning of the end of dollar dominance has started," Saqib stressed.
With six weeks to go until the BRICS summit, US-dominated military alliance
NATO is meeting in the Lithuanian capital Vilnius to decide how next to escalate its proxy conflict with Russia in Ukraine.
The business ambassador said the two international organisations were as different as night and day.
"NATO is a cooperation among member states who believe in and thrive on conflicts and wars," Saqib said, while "BRICS represents major emerging economies with a focus on South-South cooperation, development, and enhancing multilateral influence. The choice ultimately depends on a country's specific goals and priorities."
