It is understood that in the first half of last year, Brazil and China reached an important agreement, stipulating the way for the two countries to use their own currencies for settlement.
This is seen as a major breakthrough in China-Pakistan relations after Bolsonaro. According to the agreement, the real and the yuan can be exchanged and settled directly in **, creating a new trading model for the two BRICS countries. According to external reports, the move by China and Brazil is aimed at "de-dollarization", but the Brazilian side explained that this is only an internal affair between the two countries and has nothing to do with other countries.
At the latest BRICS summit, South Africa's Cyril Ramaphosa also announced that he would join the ranks of "local currency".
He made it clear that he would use national currencies and other alternative currencies for ** settlements, and stressed that the "currency issue" will be one of the agenda items discussed at the BRICS summit. The United States has paid special attention to the summit, and the New York Times reported that the BRICS countries showed the possibility of "shooting" against the United States at the summit. At this point, discussing the dominance of the dollar has become one of the key agendas of the BRICS summit.
Russian Deputy Finance Minister Ivan Chebeskov said at the meeting of BRICS ** and central bank governors on the 29th that most countries support abandoning the use of the US dollar and suggest that BRICS members settle in their own currencies.
Chebeskov proposed a unified digital platform to integrate central bank digital currencies and financial data to facilitate this process. He stressed that the BRICS countries should go further and go further on the road to free themselves from the shackles of the dollar, which is considered a key step for developing countries to break free from economic shackles.
Some analysts believe that Russia and India have officially abandoned the use of the US dollar in bilateral **, but this is only part of the move, and Russia is unwilling to accept more Indian currency. As a result, India is hostile to China, and Modi** even privately demanded in 2023 that "the use of Chinese currency for settlement" is discouraged, politicizing the renminbi issue.
Since the rules of the Bretton Woods system after World War II are still continuing, the US dollar still occupies the position of key resources such as oil and **, and the possibility of most countries collectively getting rid of the US dollar is low.
In the eyes of most Indians, the rivalry between China and India will continue for a long time, so India's rejection of the Chinese currency is also motivated by the hope that it will one day surpass China. When the local currency payment agreement reached between China and Russia was released, the first reaction of the US media was the so-called "de-dollarization", trying to lead ** in the direction of "targeting the United States".
At the same time, the United States noted that Moscow might not have shown such a keen interest in abandoning the dollar with China had it not been for the outbreak of the Russian-Ukrainian conflict. A commentator pointed out: "In recent years, the U.S. economy has fallen into an unhealthy state, and has grown excessively by constantly raising interest rates, expanding borrowing, and refusing to fill deficits. This is also because Russia was touched by Western financial sanctions this time, making more countries realize that lying in the comfortable circle of the United States is actually a victim. ”
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