A new International Reserve Currency from the BRICS Alliance may be coming soon
Russia and China lead the way in discussions to form a new international reserve currency to combat the USD's dominance...
Officials in the United States, United Kingdom, and the rest of Europe have been blaming the uncertainty in their respective economies on numerous things such as the Ukraine-Russia war as well as Covid’s consequences still lingering. Data from consumer prices last month in America and Europe show a climb to all-time highs and many speculate that the United States and its allies are already in a recession or very much on the brink of one.
On the flip side of the world, those in the circle of Russia, China, and the rest of the BRICS alliance, discussed the possibilities or future of the economy within their respective countries. Here, Vladimir Putin announced a plan to issue a “new global reserve currency.”
“The matter of creating the international reserve currency based on the basket of currencies of our countries is under review. We are ready to openly work with all fair partners.”
Russian President Vladimir Putin said.
Countries such as Egypt, Turkey, and even Saudi Arabia are also looking to join the BRICS group, or at the very least weighing the possibility.
Chris Turner, the ING Global Head of Markets, said that the move is “a move to address the perceived US hegemony of the IMF,” and “It will allow BRICS to build their own sphere of influence and unit of currency within that sphere.” The news of the reserve currency may be a surprise to some, a Global Times report found that the members of the BRICS alliance were urged to end their dependence on the greenback’s dominance.
Vladimir Putin explained, “contacts between Russian business circles and the business community of the BRICS countries have intensified.” He has also attempted an increase in foreign aid. More specifically, in return for aid from South African countries, Putin has provided weapons to the Sub-Saharan African countries. While discussing the new currency as well as bashing the United States, Vladimir Putin claimed, “Nothing lasts forever. Americans think of themselves as exceptional. And if they think they’re exceptional, that means everyone else is second class.”
“Domestic socio-economic problems that have become worse in industrialized countries as a result of the (economic) crisis are weakening the dominant role of the so-called historical West. Be ready for any development of the situation, even for the most unfavorable development.”
Vladimir Putin continued.
It has been a while now that Vladimir Putin has been promising the demise of the United States’ dominance in the finance world. Recount that in 2018, at the Valdai forum, Vladimir Putin claimed the United States sanctioning of specific countries (at the time, not Russia) would undermine the trust in the USD. Putin also stated these moves are “typical mistakes of an empire. An empire always thinks that it can allow itself to make some little mistakes, and take some extra costs, because its power is such that they don’t mean anything. but the quantity of those costs, those mistakes inevitably grows. The moment comes when it can’t handle them, neither in the security sphere or the economic sphere.”
A report concerning the BRICS Summit found that Chinese President Xi Jinping suggested that NATO is responsible for antagonizing the Russian Federation to the point they’re at now. He also said that specific countries that bolster exceptionalism will suffer from security vulnerabilities.
“Politicizing, instrumentalizing, and weaponizing the world economy using a dominant position in the global financial system to wantonly impose sanctions would only hurt others as well as hurting oneself, leaving people around the world suffering. Those who obsess with a position of strength, expand their military alliance, and seek their own security at the expense of others will only fall into a security conundrum.”
President Xi said.
Both China and Russia have recently been hiking gold reserve purchases as well for the last few years leading up to Russia’s invasion of Ukraine. Banks in Russia also joined the China International Payments System which made it easier for the countries to trade.
Original story HERE