Most of the BRICS members have agreed to no longer use dollars for settlements

Mondo Social Updated on 2024-03-02

It is reported that in the first half of last year, Brazil** and China reached an agreement to stipulate the exchange method of the two countries using local currency transactions, which is one of the breakthroughs of the two countries after Bolsonaro**. In the agreement, it was finalized that the real and the yuan could be directly exchanged and settled in **, and the two BRICS countries completed a "new model" transaction. Regarding the so-called "de-dollarization" of China and Brazil, the Brazilian side explained that they did not have any targeted changes, and this is only a matter of China and Brazil, and has nothing to do with other countries.

At the last BRICS summit meeting, South Africa's **Ramaphosa also announced that it had joined the queue for "local monetization". At that time, Ramaphosa made it clear that he would switch to the national currency and other alternative currencies for ** settlement, and he also confirmed that the "currency issue" would be one of the agenda items discussed at the BRICS summit. The United States is paying close attention to the summit, and the New York Times reported that the summit highlights the possibility that the BRICS countries are willing to "do something" against the United States. At this point, discussing the dominance of the dollar has become one of the key agendas of the BRICS summit.

On the 29th, Russian Deputy Finance Minister Ivan Chebeskov told Sputnik news agency that most countries supported the abandonment of the use of the US dollar at the BRICS ** and central bank governors' meetings, and pointed out that BRICS members need to settle in their own currencies. Chebeskov noted that the Russian Ministry of Finance advocates the creation of a unified digital platform with the aim of classifying central bank digital currencies and finance, with which all parties can move forward with the matter. He strongly encouraged the BRICS countries to go further and further away from the US currency, which is also a crucial step for developing countries to break free from the shackles.

Some analysts believe that Russia and India have officially abandoned the use of US dollars for transactions in bilateral **, but this is only partial, and Russia is unwilling to charge more Indian currency. Similarly, India is very hostile to China, with Modi even privately demanding in 2023 that "the use of Chinese currency for settlements is discouraged; Economists believe that India's Ministry of Finance has not disguised the politicization of the "risk issue" of the renminbi. On the one hand, it is very difficult for only a few BRICS countries to work hard in this regard, and it is still a continuation of the rules under the Bretton Woods system after the end of World War II, and the status of the dollar tied to oil and ** is very high, and it is only possible if most countries in the world collectively do this in the future to get rid of the dollar.

It is also worth mentioning that in the eyes of most Indians, their competition with China will be long-term, so another reason why India does not accept the Chinese currency is that it hopes to overtake China one day. Previously, when the agreement between China and Russia to use local currency for payment was first released, the first reaction of the US media was also the so-called "de-dollarization", trying to lead the ** to "against the United States"; But the United States ** also pointed out that if it were not for the Russia-Ukraine conflict, Moscow probably would not have had such a high interest in abandoning the dollar with China. "However, in recent years, the U.S. economic development has fallen into an unhealthy state, using the dollar to raise interest rates wildly, expand borrowing, refuse to fill the deficit and other modes of overspending growth," said a comment. If it weren't for Russia's wake up by the West's financial stick, most countries would still be willing to lie in the comfortable circle of the United States, even though they know that this circle is harvesting and exploiting." ”

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