As it stands, the major takeaway is that the Unit should be seen as a feasible, technical solution for the theoretically unsolvable: a globally-recognized payment/trade system, immune to political pressure.
As it stands, the major takeaway is that the Unit should be seen as a feasible, technical solution for the theoretically unsolvable: a globally-recognized payment/trade system, immune to political pressure.
How will BRICS+ be able to make its currency immune from political pressure would be something good to watch or are we referring here political pressures from USA and not within its own membership? One of the biggest problem that Euro faced with its integration in the Eurozone is that they all have different economies with so diverse of features and getting a uniform value produced many problems that are still being ironed out even today so I think the idea of making the new BRICS+ currency be independent away from each member's economy can be a good start. I can see that the main ambition of BRICS+ is to eventually replaced the US Dollar as the default international currency reserve to get away from the hegemony and control of USA. For sure, once that happen the value of dollar will plummet and can be one of the many reasons for its economic collapse...now how will the fall of US economy be affecting other countries would be one thing worth watching.
It has been a long time since I heard about BRICS+, and it is good that you created this topic for discussion. I am from the United Arab Emirates and I can say that my country depends on the dollar in one way or another. The local currency is linked to a fixed value of the dollar, and the sale of natural gas is made in dollars, and investments in Ports require that sales be made in dollars.
Your country is de-dollarizing
Of course they are the first steps, but it's clear what's happening
Dubai is a major gold trade hub.
Abu Dhabi too?
+1 for coming from the UAE!
If Bric is coming to the digital currency, it won't work out because it will be a centralized digital currency that will be controlled by the supported countries and if it is for the formation of the regional currency to eliminate the US Dollar then they might succeed because what they are planning to do is to use the agreed currency to trade, buy things and pay goods and services. Then it will work out and they are winning more countries to the economic block.
(https://www.talkimg.com/images/2024/05/26/LRsGH.jpeg)
If Bric is coming to the digital currency, it won't work out because it will be a centralized digital currency that will be controlled by the supported countries and if it is for the formation of the regional currency to eliminate the US Dollar then they might succeed because what they are planning to do is to use the agreed currency to trade, buy things and pay goods and services. Then it will work out and they are winning more countries to the economic block.
(https://www.talkimg.com/images/2024/05/26/LRsGH.jpeg)
Definitely the reason why countries that are afraid of sanctions are now looking forward to decentralized assets. I don't think joining BRICS would solve the problem as I think some of these countries has trust issues with themselves so I think they will still prefer decentralized assets like Bitcoin or they will still use local currency to trade like CBDC or the BRICS currency but I think we still need time to get a more clear view of it's real life usage in the future.Your country is de-dollarizing
Of course they are the first steps, but it's clear what's happening
Dubai is a major gold trade hub.
Abu Dhabi too?
+1 for coming from the UAE!
This happened for political reasons, especially the Arab countries’ fear that the United States would not activate the defense agreements if these countries were attacked. Also, what happened with Russia and the freezing of assets made some Arab countries diversify their investments with China and India and even join BRICS+, but I do not think that the government will go far at it.
The real change will be when the economic outlook changes, as the political reasons can change.
Definitely the reason why countries that are afraid of sanctions are now looking forward to decentralized assets. I don't think joining BRICS would solve the problem as I think some of these countries has trust issues with themselves so I think they will still prefer decentralized assets like Bitcoin or they will still use local currency to trade like CBDC or the BRICS currency but I think we still need time to get a more clear view of it's real life usage in the future.Your country is de-dollarizing
Of course they are the first steps, but it's clear what's happening
Dubai is a major gold trade hub.
Abu Dhabi too?
+1 for coming from the UAE!
This happened for political reasons, especially the Arab countries’ fear that the United States would not activate the defense agreements if these countries were attacked. Also, what happened with Russia and the freezing of assets made some Arab countries diversify their investments with China and India and even join BRICS+, but I do not think that the government will go far at it.
The real change will be when the economic outlook changes, as the political reasons can change.
"On 28 March 2023, the Shanghai Petroleum and Natural Gas Exchange (SHPGX) made history by announcing the first-ever deal on importing 65,000 tons of liquefied natural gas (LNG) from the UAE, settled in the Chinese yuan currency."
thecradle.co (https://thecradle.co/articles-id/793)
"China's attempts to internationalise the yuan are finding fruit in the Gulf states. These states, particularly the United Arab Emirates and Saudi Arabia, are strengthening their financial cooperation with China through currency swap agreements, cross-border trade settlement arrangements and digital currency collaboration efforts.
On 28 November 2023, the People’s Bank of China and the Central Bank of the United Arab Emirates renewed their currency swap agreement worth US$4.89 billion for five years. Both banks also signed a memorandum of understanding to enhance collaboration in digital currency development."
eastasiaforum.org (https://eastasiaforum.org/2024/01/17/chinese-yuan-gains-currency-in-the-gulf-states/#:~:text=On%2028%20November%202023%2C%20the,collaboration%20in%20digital%20currency%20development.)
"The key to understanding it all is Chinese President Xi’s recent historic visit to Saudi Arabia and other Gulf Cooperation Council (GCC) states to launch, in his words, “a new paradigm of all-dimensional energy cooperation.”
The GCC includes Saudi Arabia, Kuwait, Qatar, Bahrain, Oman, and the United Arab Emirates.
China is the GCC’s largest trading partner.
During Xi’s visit, he made the following crucial remarks (emphasis mine):
“China will continue to import large quantities of crude oil from GCC countries, expand imports of liquefied natural gas, strengthen cooperation in upstream oil and gas development, engineering services, storage, transportation and refining, and make full use of the Shanghai Petroleum and National Gas Exchange as a platform to carry out yuan settlement of oil and gas trade.”
internationalman.com (https://internationalman.com/articles/rise-of-the-petroyuan-the-end-of-the-petrodollars-reign-and-the-impact-on-global-markets/)
(https://i.ibb.co/k1h83N1/3.png)........(https://i.ibb.co/zxkshHG/2.png).......(https://i.ibb.co/CwzSTfy/1.png)
"trade in local currency" means no $
China... Kenya... India... Indonesia... S. Korea
Hugeblack, are you aware of the giant steps your country is making in de-dollarizing its international trade?
exporting and importing i think is just what they try to avoid using USD.
its just the governments that are doing the dedollarization, but not the citizens. people still use the USD since trading it to the local currency is higher. it benefits the people.
every news we see today in finance is somewhat related to inflation and BRICS. they are growing regardless of whether US like it or not.
but because crypto is international, i think they will likely prefer to be using BTC as option.
exporting and importing i think is just what they try to avoid using USD.
its just the governments that are doing the dedollarization, but not the citizens. people still use the USD since trading it to the local currency is higher. it benefits the people.
every news we see today in finance is somewhat related to inflation and BRICS. they are growing regardless of whether US like it or not.
but because crypto is international, i think they will likely prefer to be using BTC as option.
Cryptocurrency is not an international settlement currency.... For example, in China, cryptocurrency is illegal! How will cryptocurrency be used in BRICS? It would be interesting to know the analytics on bitcoin reserves by BRICS+ countries. And also - which of the BRICS+ countries use cryptocurrencies massively and for any transactions for any people ? After you study these statistics - you will realize that the future of cryptocurrencies (we are talking about bitcoin and its alternatives), in BRICS+ will definitely not be a “single currency”.
exporting and importing i think is just what they try to avoid using USD.
its just the governments that are doing the dedollarization, but not the citizens. people still use the USD since trading it to the local currency is higher. it benefits the people.
every news we see today in finance is somewhat related to inflation and BRICS. they are growing regardless of whether US like it or not.
but because crypto is international, i think they will likely prefer to be using BTC as option.
Cryptocurrency is not an international settlement currency.... For example, in China, cryptocurrency is illegal! How will cryptocurrency be used in BRICS? It would be interesting to know the analytics on bitcoin reserves by BRICS+ countries. And also - which of the BRICS+ countries use cryptocurrencies massively and for any transactions for any people ? After you study these statistics - you will realize that the future of cryptocurrencies (we are talking about bitcoin and its alternatives), in BRICS+ will definitely not be a “single currency”.
the chinese are using cryptocurencies though. the government only bans crypto to the financial institutions in China but not for the people using it. you can see on the wechat channel the Chinese have their own crypto market.
they are still using Bitcoin and some other crypto. even Russia I think are are not able to ban BTC, people are still buying and selling crypto and you can yobit still running since time.
In my opinion this is India's advantage and I can see huge potential to rank up being part of the BRICS no matter what because of it's neutrality as they only focused in the growth of it's economy and this will end with positive result in the long run the reason why it is possible that India one day will overtake China's economy and might in the next decades to come no doubt about that.Definitely the reason why countries that are afraid of sanctions are now looking forward to decentralized assets. I don't think joining BRICS would solve the problem as I think some of these countries has trust issues with themselves so I think they will still prefer decentralized assets like Bitcoin or they will still use local currency to trade like CBDC or the BRICS currency but I think we still need time to get a more clear view of it's real life usage in the future.Your country is de-dollarizing
Of course they are the first steps, but it's clear what's happening
Dubai is a major gold trade hub.
Abu Dhabi too?
+1 for coming from the UAE!
This happened for political reasons, especially the Arab countries’ fear that the United States would not activate the defense agreements if these countries were attacked. Also, what happened with Russia and the freezing of assets made some Arab countries diversify their investments with China and India and even join BRICS+, but I do not think that the government will go far at it.
The real change will be when the economic outlook changes, as the political reasons can change.
they are waiting for the result of the wars that's happening. some are undecided whether they are going to side with Russia which they could rely on cheap energy but at the same time, afraid of sanction.
US is also not going direct military confrontation with China since this is going to be both devastating in their economy. but this prolong war will still result to same thing. all in all, countries are just waiting which one will lose in trade war and they could all side to the winner.
....
In my opinion this is India's advantage and I can see huge potential to rank up being part of the BRICS no matter what because of it's neutrality as they only focused in the growth of it's economy and this will end with positive result in the long run the reason why it is possible that India one day will overtake China's economy and might in the next decades to come no doubt about that.
Well yeah that is true. That is why China is creating show of force almost every day just to make distractions amongst it's neighbors just for them to look strong which is diversional for me because in my opinion they are cooking something they don't want the world to know one thing is that deep inside they are weak due to corruptions on their military and that is what they are having a hard time fixing themselves since their national security is at risk due to crisis that is currently happening as I can see corruptions, protests, natural disasters and stuff has hit them recently. What is funny is that they will keep on doing that until such time they will fully fix their problems which will give it's neighbors to respond together and stand against the giant. If only China is not a greedy country, I think they had the most friends worldwide not only countries that form BRICS.....
In my opinion this is India's advantage and I can see huge potential to rank up being part of the BRICS no matter what because of it's neutrality as they only focused in the growth of it's economy and this will end with positive result in the long run the reason why it is possible that India one day will overtake China's economy and might in the next decades to come no doubt about that.
It is India that can make BRICS a full-fledged union of countries and give an impetus to the development of the economies of the countries, since it is India that chooses the vector of development and Western concepts of development. China will drag the BRICS to the bottom of the "club of pariah countries" and make them its colonies, raw material appendages, and "importers of problems of the Chinese economy".... And he, China, has already done it with some countries.... But some are still applauding in the "frenzy of dedollarization" fighting "the West".... Although to be honest - they are fighting common sense and normal life :)
Well yeah that is true. That is why China is creating show of force almost every day just to make distractions amongst it's neighbors just for them to look strong which is diversional for me because in my opinion they are cooking something they don't want the world to know one thing is that deep inside they are weak due to corruptions on their military and that is what they are having a hard time fixing themselves since their national security is at risk due to crisis that is currently happening as I can see corruptions, protests, natural disasters and stuff has hit them recently. What is funny is that they will keep on doing that until such time they will fully fix their problems which will give it's neighbors to respond together and stand against the giant. If only China is not a greedy country, I think they had the most friends worldwide not only countries that form BRICS.
Biggest economies in the world
1) China
2) USA
3) India
4) Russia
Who could imagine Russia has a bigger GDP than Japan or Germany.