Could there be a new financial system not dependent on USD?

[Mimiklinton]

Source: Tutwa Consulting Group

BRICS nations are advancing at a fast pace to eliminate the U.S. dollar-dominated financial system. The first step is to bypass the U.S. dollar and the second step is to create a new currency to settle international trades. While the first step is already in practice, the second step could be put in place after the BRICS summit in August 2023.

The alliance countries have already taken measures to bypass the US-dominated global financial system. The aim is to move away from the dependency on the U.S. dollar and provide an alternative global financial option. BRICS is an alliance of Brazil, Russia, India, China, and South Africa.






BRICS: The Next Step To Eliminate The U.S. dollar
currency

Source: Unsplash

Just recently, BRICS nations overtook G7 countries in global GDP while taking purchasing power parity into account. Russia announced that it would pay with the Chinese Yuan to settle trade with Asian, African, and Latin American countries. China and France completed the LNG gas trade using Yuan, ending the dollar’s reliance on energy trades.

Therefore, BRICS are currently successful in their plans to eliminate the U.S. dollar to settle global trades in native currencies. However, if the alliance countries agree to a mutual currency to settle global trade in the upcoming summit in August, the dollar may face a significant drop in demand.
The U.S. dollar might lack potency if the BRICS countries fully eliminate it for global settlements. Over time, many other countries could join the bandwagon and distance themselves from the USD.

The development could make the dollar weak and make way for a new financial system not dependent on the USD. The success or failure of this development now only depends on the next BRICS summit in South Africa.
The transition to settlements in national currencies is the first step. The next one is to provide the circulation of digital or any other form of a fundamentally new currency in the near future,” said the Deputy Chairman of Russia Duma, Alexander Bobakov

https://watcher.guru/news/brics-advancing-to-eliminate-u-s-dollar-financial-system

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[dansus021]

In my opinion, new financial system without dependent on USD is very possible, as long the countries who involved with is agree. In fact creating new money is possible too as long as the community is agree.


A little bit out of topic I want to add some other news too

French president says Europe should limit dependence on US - https://www.aa.com.tr/en/europe/french-president-says-europe-should-limit-dependence-on-us-for-security/2769816

China - Saudi Arabia summit agreements put pressure on US influence - https://www.vox.com/2022/12/10/23502903/china-saudi-arabia-united-states-relations-strain

[karmamiu]

In my opinion, new financial system without dependent on USD is very possible, as long the countries who involved with is agree. In fact creating new money is possible too as long as the community is agree.


A little bit out of topic I want to add some other news too

French president says Europe should limit dependence on US - https://www.aa.com.tr/en/europe/french-president-says-europe-should-limit-dependence-on-us-for-security/2769816

China - Saudi Arabia summit agreements put pressure on US influence - https://www.vox.com/2022/12/10/23502903/china-saudi-arabia-united-states-relations-strain

Yes exactly. As long as there is a mutual agreement between everyone, it is not impossible to even create new currency to be used or change the financial system in which it won't be dependent on USD. In regards to changinf currencies, we are all aware that there have been mamy issues involved with USD even from before, and there are so many countries who are already waiting to be next reserved currency.

The currency alone is easy, but the agreement is the one that seems possible. We know that before it reaches some sort of agreement, there're various procedures to follow and it is also possible that there will be debates and arguments to follow.

[MainIbem]

I have less information about abroad but i must say something that we have to reason collectively,
Out of 195 countries in the world i know too well that most of the population (country's) are solely depending on USD, EURO, POUNDS, YUAN for major trade. I mean before anyone could trade among these 195 you need any of those currency to be able to travel across, and if only 6 countries decides to breakout from USD how do you think it will affect the US dollar?
There will be no much effects

[Minecache]

I have less information about abroad but i must say something that we have to reason collectively,
Out of 195 countries in the world i know too well that most of the population (country's) are solely depending on USD, EURO, POUNDS, YUAN for major trade. I mean before anyone could trade among these 195 you need any of those currency to be able to travel across, and if only 6 countries decides to breakout from USD how do you think it will affect the US dollar?
There will be no much effects

Things are just getting started, man. The dollar won't lose its dominance any time soon, but the fact that some countries are starting to get rid of it means it has problems, and many more will soon realize it too. In the history of currency, USD is not the only dominant currency in the world, before that, we also had other currencies but were replaced by USD. It can replace others, others will replace it, and nothing is forever. The United States is not the founder of this earth.

[Alpha Marine]

I have less information about abroad but i must say something that we have to reason collectively,
Out of 195 countries in the world i know too well that most of the population (country's) are solely depending on USD, EURO, POUNDS, YUAN for major trade. I mean before anyone could trade among these 195 you need any of those currency to be able to travel across, and if only 6 countries decides to breakout from USD how do you think it will affect the US dollar?
There will be no much effects

Right now there may be no effect or significant effect but if other countries begin to buy into the idea one at a time, it may be troubling for the USD. These kinds of things take time. It doesn't just happen overnight. Alexander did not conquer half of the world in one day, Rome did not rule most of the world in one day, and Britain did not colonize their colonies in one day. Even America did not become a world power overnight.

This is just the beginning of the plot between Russia and China. China has been looking for ways to make the yuan a federal reserve for a while now.
Personally, I don't believe in their idea. China is not a country I can trust. They're no different from the US. They're both looking for ways to make their countries and their economy stronger.
Another reason why I'll always pick the USD over the yuan is that I'll choose capitalism over socialism anytime, any day.

[Flexystar]

I don’t know what is wrong but you guys are really stressing a lot on the BRICS and successful future. There are already unwanted complications between the countries of BRICS which makes it highly unlikely to have successful agreement upon accepting the Chinese currency YUAN as the currency reserve of nations.

In all of them India is one of the strongest candidate with worlds one of the largest GDP rate and its growing exponentially.

The catch? India and China do not form any alliance with each other and they both are quiet because of one nation that is Russia. In addition to this, China and India is always on Cold War. Their borders are always under stressful conditions where chinese are trying to enter the border and claim military zones under them.

Secondly, china is always trying to support Pakistan and Shri Lanka with their problems out of greed. This is to obtain two geolocations one is the Srilankaan Port to access Indian Ocean roots for international trades. While Pakistan is target due to its weakening economy and future investment.

As far as these two nations don’t go along, YUAN is not happening.

[MainIbem]

I have less information about abroad but i must say something that we have to reason collectively,
Out of 195 countries in the world i know too well that most of the population (country's) are solely depending on USD, EURO, POUNDS, YUAN for major trade. I mean before anyone could trade among these 195 you need any of those currency to be able to travel across, and if only 6 countries decides to breakout from USD how do you think it will affect the US dollar?
There will be no much effects

Things are just getting started, man. The dollar won't lose its dominance any time soon, but the fact that some countries are starting to get rid of it means it has problems, and many more will soon realize it too. In the history of currency, USD is not the only dominant currency in the world, before that, we also had other currencies but were replaced by USD. It can replace others, others will replace it, and nothing is forever. The United States is not the founder of this earth.

Well there's nothing much to delibrate about but less hope all things come as we may live to witness how it would go through. Sincerely speaking those currencies I listed above is the major strongest currency that controls the world trading power and even if any would take over maybe it could be with time.

[iamMhew]

In my opinion, new financial system without dependent on USD is very possible, as long the countries who involved with is agree. In fact creating new money is possible too as long as the community is agree.


A little bit out of topic I want to add some other news too

French president says Europe should limit dependence on US - https://www.aa.com.tr/en/europe/french-president-says-europe-should-limit-dependence-on-us-for-security/2769816

China - Saudi Arabia summit agreements put pressure on US influence - https://www.vox.com/2022/12/10/23502903/china-saudi-arabia-united-states-relations-strain

 Your last two points are just pre-requisite of your initial point, looks like Im listening to a JT song, what goes around comes around. Can you elaborate , what are the ways of both countries will agree on?

[Ucy]

Well, people who understand how the system works wouldn't be talking this way.

To understand things clearly, imagine the World as a Human body, USA is the Head while the rest of the body are other countries. The one who controls the body, the Head, controls other countries and systematically imposes its currency ( & will) on them for global transactions.
It is going to be really hard for China to sustain the use of its currency globally. Russia could, but I noticed it's not too interested in Interfering or imposing its will on other countries. You need to back the currency militarily which I believe Russia already has considering it military might.

The dollar is currently weakening because USA the Head of the body has become weak due to lack of strong and intelligent leadership that could sustain it, but this is temporary...the BRICS's or any other currency can't survive it in the long run even with Russia behind them militarily unless maybe it breaks away from the current system & become decentralized(and hard to stop) or is allowed by US to thrive. But there cannot be two heads on one body even with decentralization. They will always find themselves under the power of US somehow unless the role as the head is taken away from US and given to China for example, but China doesn't seem to meet the requirement as it's not a Multi-Racial/Multi-cultural society (Babylon). Babylon is typically the Mini-world inside the World for a reason. Another way to be independent is to have the yolk broken, but no one else but the CREATOR of Heaven and Earth can do that.

By the way, Russia is currently acting as the head of the body until the true king of Babylon is awoken from sleep. Russia could easily have the world use its currency and be able to sustain it for some years, but she is not too interested.

[iamMhew]

I have less information about abroad but i must say something that we have to reason collectively,
Out of 195 countries in the world i know too well that most of the population (country's) are solely depending on USD, EURO, POUNDS, YUAN for major trade. I mean before anyone could trade among these 195 you need any of those currency to be able to travel across, and if only 6 countries decides to breakout from USD how do you think it will affect the US dollar?
There will be no much effects

The USD accounted for about 60-70% of international transaction in the global economy (let's say 65%). Now BRICS accounted for about 23% of the Global economy, current BRICS countries estimates 85% of their
transations in USD. If all of this will be converted to a new BRICS recommended currency(assuming 85% is equivalent to the economy meaning economy=international transactions) So 23% multiply by 85% equals
20%. So this 20% will be taking out in the 65%, I mentioned earlier. USD will be left use by 45% only now BRICS still holds the 23%. Going back to your statement "Noeffect", thats 1/3 of the USD used transactions.

But wait theres more, there are some countries have the intention to join BRICS, even Euro like France consider settling some trades with China in Yuan. And dont get me started in the Middle East. SEA, South America?

Please correct me if Im wrong.

[electronicash]

with more countries joining BRICS, it could be possible. so far they are growing though.

Macron just recently agreed to settle with Yuan in trading with China. France will not be the last to settle Yuan in trading with China. China is becoming the center of the world as they are the biggest trading partner of most countries. China certainly is the biggest threat to US dominance therefore the possibility of not just a cold war against the US. a military conflict is about to ignite in the Pacific already.

[iamMhew]

I don’t know what is wrong but you guys are really stressing a lot on the BRICS and successful future. There are already unwanted complications between the countries of BRICS which makes it highly unlikely to have successful agreement upon accepting the Chinese currency YUAN as the currency reserve of nations.

In all of them India is one of the strongest candidate with worlds one of the largest GDP rate and its growing exponentially.

The catch? India and China do not form any alliance with each other and they both are quiet because of one nation that is Russia. In addition to this, China and India is always on Cold War. Their borders are always under stressful conditions where chinese are trying to enter the border and claim military zones under them.

Secondly, china is always trying to support Pakistan and Shri Lanka with their problems out of greed. This is to obtain two geolocations one is the Srilankaan Port to access Indian Ocean roots for international trades. While Pakistan is target due to its weakening economy and future investment.

As far as these two nations don’t go along, YUAN is not happening.

Can you check my data please? by the end of 2021 according to IMF, China has a GDP of 16 trillion USD, while India has 3 trillion. In the next 10 years, China has a projected  on average 4.4% GDP growth rate,
while India have 5.6%. Now I tried to calculate and extrapolate based on the information, in the next 10 years China will have 25 trillion GDP in year 10 while India will have 5 trillion.

[Zaguru12]

with more countries joining BRICS, it could be possible. so far they are growing though.

Macron just recently agreed to settle with Yuan in trading with China. France will not be the last to settle Yuan in trading with China. China is becoming the center of the world as they are the biggest trading partner of most countries. China certainly is the biggest threat to US dominance therefore the possibility of not just a cold war against the US. a military conflict is about to ignite in the Pacific already.

Although it is possible for new international currency but it will be hard to just tumble off the dollar most especially not the yuan. The yuan is tightly controlled by the Chinese government and that will not make sense to move entirely into it. What I see is that this country just wish to reduce the political influence or dominance of dollar. I see this yuan as just and alternative to the dollar but maybe in near future it could come but not now.

[siniminomorocomunisakito]

I have less information about abroad but i must say something that we have to reason collectively,
Out of 195 countries in the world i know too well that most of the population (country's) are solely depending on USD, EURO, POUNDS, YUAN for major trade. I mean before anyone could trade among these 195 you need any of those currency to be able to travel across, and if only 6 countries decides to breakout from USD how do you think it will affect the US dollar?
There will be no much effects

I think the complexity of the global financial system and the dominance of the USD and other major currencies is not solely determined by practical needs, but also by complex economic and political factors meaning what it means. Any attempt to move away from these currencies will require significant coordination and collaboration. between countries, as well as careful consideration of the possible consequences.

While there won't be much effect I think any major shift in the global financial landscape will require careful consideration of the potential impact and a collective effort between countries to make it work effectively.

[Unbunplease]

The whole question is whether the U.S. has anything to do with the new financial system that is being created. Yes, we are told that some new system is being created, but in fact we will get the old system under a new name. So far we have seen a decrease in inflation in the U.S. and a balancing of the dollar. It is quite possible that the dollar will soon go on the offensive.

[Captain Corporate]

Its funny how some nations still think that they could become bigger. Lets assume for a second that USA and EU just works with each other, and never spends a dime in those other nations, do you really believe that those nations could survive for even just a single year? Of course not, which means that we are talking about a situation where dollar will continue to be as strong as it gets. People who think otherwise have absolutely no clue where the money those BRICS nations got it from. They got it from the big nations, and most of them are debt, which means that G7 simply gives them IOU and move on with their life without a worry which will continue to exist for a long time.

[Darker45]

There is indeed a serious pressure on the US right now. Although the threat to ditch the USD has been there for a while, at this point it has become more serious than ever. China's economy, global influence, military capabilities are growing stronger and stronger and could now seriously challenge the US. And with Asia, the middle east, a part of Europe, a considerable part of Africa, the largest economy in South America all significantly drawn toward China, the US should begin to think of a new strategy. It has to develop leverage in order to attract these countries more.

[BALIK]

I just think simply, nothing lasts forever, there will always be changes over time. As far as I know, before the USD ruled the world, we also had the British Pound, Spain, and the French...all had a cycle of domination, and there will come a time when it will be superseded. USD is no exception, many people think that the US is too strong and will never be defeated, but with what is happening, they are becoming weaker than ever. Whether or not the BRICS will succeed we don't know yet, but it shows that many countries are ready not to need the US, and they need a new leader.

[DrBeer]

 

“The first step is to abandon the US dollar, and the second step is to create a new currency for settlements in international transactions. Although the first step has already been put into practice, the second step can be implemented after the BRICS summit in August 2023.”

It sounds absolutely identical: "let's give up breathing oxygen-based mixtures and then a little later, if possible, come up with a replacement for this mixture!". Nothing bothers you?
In addition to the rather stupid formulation of the task, and in euphoria, all these fighters with the dollar do not notice how they are killing their economy, moving away from the international settlement standard, and become totally dependent on the low-liquid yuan, with which they will be able to settle ONLY with China.

And France is such a France A classic theme when the country is in crisis is "The United States is to blame for everything, Long live Great France!". Are you hearing this for the first time? I recommend reading the story - how not to drive yourself into some kind of another big problem, this is how this speech sounds!


PS And I repeat once again - "from all sockets" at the same time, as if on command, they began to write about the "global rejection of the dollar" and other "heartbreaking stories." When such a media howl accelerates, it means that someone wants, wants very much, to distract the masses from something really important. For example, from the realization that those who abandoned the dollar, such as the unfortunate BRICS countries, will soon be monopolized by the RMB, from which they will not be able to get off, and returning to the normal world economy with the dollar will be sooo painful and difficult!
Not understood ? Ok, even simpler - there is no departure from the dollar, there is a special economic operation of China on "guinea pigs", to save its economy, through the transit of yuan problems to other countries, which will be forced to conduct all transactions in yuan. But China has not refused the dollar and is not going to, moreover, it is increasing its reserves, at the expense of those not very smart comrades-in-arms "in the fight against the dollar"