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

[noorman0]

-snip-
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

It still depends on a number of things. Just judge their economic strength and how much they do business with other countries. If other countries depend a lot for business on BRICS countries where some of them are known to be slowly becoming "super power" countries, then they are enough to bring influence in the de-dollarization movement.

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[Plaguedeath]

Fiat money don't have any intrinsic value, if the government doesn't force their citizens to use their fiat, fiat money is already worthless because no one trust it and there's no reason to use it. The most important part about fiat money is the government accept it and everyone trust the government, so it's really possible financial system will not dependent on USD if the country agree to refuse using USD.

[Othellobit]

Of course, a time shall come where Dollar will be out of control in the financial global market. Research have it that currencies are rated based on their exchange with INR. Some currencies have higher exchange with INR than the US Dollar we speak of. as such, most of these currencies are independent of the dollar in terms of National exchange but depends on them only on Global transactions. dollar is the most traded currency in the world, not the currency with the highest exchange rate, this is because US is a multi-racial Nation. As such,  if other Nations like Kuwait, Bahraini, Omani ,(with a higher currency rate than dollar) etc,  are able to meet up this requirement,  and can impose their currency to be used for international transactions in the global economy, there would surely  be a break out from the dependency on USD, EURO, and pounds for major exchange.

[MainIbem]

-snip-
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

It still depends on a number of things. Just judge their economic strength and how much they do business with other countries. If other countries depend a lot for business on BRICS countries where some of them are known to be slowly becoming "super power" countries, then they are enough to bring influence in the de-dollarization movement.

Although these 5 countries are also another "super power country" that would conquer so easily if the de-dollarization takes effects., they are also the major export of goods and service across the nation and sure BRICS will become known but may not affect the dollar itself or that much.
For example, just as some country stopped bitcoin mining it only affects the bitcoin price for just that month or so, and after which it bounces back to normal price and i believe such scenario would likely happened to the Dollar as well.

[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.

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.

Let time tell it all because both you and I and each have a different ideology, and no one has a crystal ball to predict the future, so don't rush to judge who is right or wrong here. Big events like this will be unlikely and will end in the short time that everything will be exposed over time. Let's see how it ends, and I don't like power concentrated on one person and nothing lasts forever. The world has been around for thousands of years and the US was not the first country to lead the world so it is not surprising that they are not the last leading country.

[Kakmakr]

Do you really want to rely on a "currency" that are part of the BRICS group, when it includes countries that cannot even keep the lights on? South Africa are without electricity for most of the day... and people have to run generators and rely on solar power to keep their businesses from collapsing. 

The only strong nation in that group are China, but they are very dependent on 1st world countries to buy their poorly manufactured "plastic" toys to keep their economy running.... and they are importing almost all their resources from BRICS countries to manufacture it. 

[zasad@]

The Americans will not give anyone the right to print mora currency. If this happens, then the American economy will have big problems.
Therefore, they will try in various ways to unleash as many wars as possible away from themselves, so that other countries have something to do.

[yhiaali3]

I believe that the foundations for forming an alternative system to the dollar really began to take shape a long time ago. The United States, with its transcendent policy that tries to bring everyone under its control, has made many countries seriously think about getting rid of the hegemony of the United States and the dollar.

The countries of the BRICS group were already formed a long time ago, and their first goal is to form an alliance to confront the hegemony of the United States. It seems that they will now begin to succeed in view of the crises that the United States is going through, as well as the attempt of many countries to abandon the dollar, led by Saudi Arabia, the first source of oil in the world.

[Fortify]

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

Just like the British Pound used to be the reserve currency of the world (although not to the same degree), the US dollar is not impervious to being replaced in this status. However there are not really any good contenders at the moment, or the ones that proclaim to be have their own flaws. The Euro for example is still very fragmented because there are 25+ countries behind it all with separate economic incentives - we saw a crisis a while back where Greece was on the verge of bankruptcy and some animosity from others in the group of bailing them out. China also looks like a rising contender, but they have such an opaque financial and governmental management structure it is almost impossible to trust their politicians.

[Sarah Azhari]

so it's really possible financial system will not dependent on USD if the country agree to refuse using USD.

They won't people leave Dollar, they will try hard to people believe Dollar is the god of finances. So, we are the small group (minority) that can't do anything with that. Let's see China, they try to grow Yuan to be the God of fiat (to replace the Dollar), but in fact, the big power get in the way, and they will interfere Yuan or another currency to replace the dollar hegemony.

so let we'll see the fall, and we must prepare it with another strong currency (like bitcoin).

[DrBeer]

Do you really want to rely on a "currency" that are part of the BRICS group, when it includes countries that cannot even keep the lights on? South Africa are without electricity for most of the day... and people have to run generators and rely on solar power to keep their businesses from collapsing.

The only strong nation in that group are China, but they are very dependent on 1st world countries to buy their poorly manufactured "plastic" toys to keep their economy running.... and they are importing almost all their resources from BRICS countries to manufacture it.

That is why China drives its "satellites" under the control of the yuan. On the wave of their "itch" against the dollar I already wrote, I will duplicate - if the governments of these countries do not turn on the brain, then in 5 years we will see a new Chinese empire with its currencyless and powerless servants! Servants who have completely lost their economic independence and the ability to independently interact with the world market, due to the absence of any currencies accepted in the world in national banks ... Nothing but a bunch of beautiful Chinese papers
Or maybe even faster it will happen - China now needs to find "reservoirs" for its inflation as quickly as possible, which needs to be "drained" somewhere

[concept2]

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.
...

Get this, the BRICS coalition is making huge attempts to eliminate the USD-dominated banking system. But developing a new currency takes hard work and resources. Consider the global impact of such a decision, not just on the alliance. It might shift the global financial balance and provide developing nations new chances.

BRICS countries have made progress by bypassing the US-dominated banking system by settling global trades in their own currencies. They're proposing a new currency at their forthcoming conference in South Africa, which would hurt US dollar demand.

[DrBeer]

The Americans will not give anyone the right to print mora currency. If this happens, then the American economy will have big problems.
Therefore, they will try in various ways to unleash as many wars as possible away from themselves, so that other countries have something to do.

Great idea ! So ... Then it turns out that Russia provoked the nearest and slightly more distant countries into military conflicts, fomented them and supported them, from the moment the USSR collapsed to today, because the ruble is extremely unstable, and other countries that were once part of the sphere of influence of the USSR (RF called herself the heiress) were supposed to act as a "solution" so that the Russian economy would not have problems!? Wow... Very interesting idea, thanks! I'll know !

[mvdheuvel1983]

Yes, soon not certainly the US dollar may not be as powerful as it is now but this isn't going to happen in the twinkle of an eye. In fact the duration for this change to fully occur is 10 - 20 years.
This is so because there will still be many hurdles to cross Before the so-called BRICS will be fully integrated into the financial system. First of which is how to convert it, then it's liquidity , stability, and credibility. We might see a whole financial war before it happens. Therefore, let's not be so optimistic about this news.

[Renampun]

- Establishment of the BRICS Development Bank: The BRICS established their own development bank in 2014 with the aim of financing development projects in member countries.

- Establishment of BRICS Reserve Fund: The BRICS also established a reserve fund in 2015 as an alternative to the IMF (International Monetary Fund) to strengthen the financial position of individual countries in the face of a possible economic crisis.

- Economic cooperation: The BRICS has made various efforts to strengthen economic cooperation among its member countries, including increasing trade and investment and developing technology.

- Cooperation in the political and security sphere: The BRICS has also increased cooperation in the political and security sphere, including support for international conflict resolution and efforts to enhance regional stability.

SOURCE GOOGLE ---

The BRICS is an alliance of great nations but will their plan be a huge success, above it was explained that each country still has its own interests and often their plans change according to the political conditions there.

btw, I don't see the de-dollarization that many alliance states are doing to be effective in the short term but it will be effective in the long term.

in fact, we can see one country that is trying to reduce their country dependence on the USD, that is el salvador, so far they are fully dependent on the dollar but trying to reduce that dependence by making Bitcoin a legal tender.

[Ozero]

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.

Perhaps the desire of the BRICS countries to get rid of the dollar is indeed there. Russia, for example, has not only a desire, but also a necessity. Because it is actually cut off from the dollar and the euro by the imposed sanctions. There has long been a cold war for economic supremacy between China and the US. But Russia, China, like the rest of the BRICS countries, depend on technology and trade with the EU and the US. And without these technologies, they will not develop rapidly. Therefore, not everything is as simple as it seems at first glance. Each member of the BRICS will still have their own interests. So I don't think they will succeed.

[Twentyonepaylots]

Yes, soon not certainly the US dollar may not be as powerful as it is now but this isn't going to happen in the twinkle of an eye. In fact the duration for this change to fully occur is 10 - 20 years.
This is so because there will still be many hurdles to cross Before the so-called BRICS will be fully integrated into the financial system. First of which is how to convert it, then it's liquidity , stability, and credibility. We might see a whole financial war before it happens. Therefore, let's not be so optimistic about this news.

I agree since if more countries would join the BRICS of removing US dollar in trade transactions, a new currency system could arise other than this. But, given that us dollar is widely used in the world trade, I can't see it to be replaced soon. But given some countries are ditching the use of dollar in trading, this might affect the power of the dollar as a global currency. It would be bad for their economy if these happens. But we should not erase the fact that USA have greater power in most of the country in the world that we could say that they are reliant to them in terms of economy. So, it would be very difficult to predict what could happen in that sense.

[Ayers]

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.

Perhaps the desire of the BRICS countries to get rid of the dollar is indeed there. Russia, for example, has not only a desire, but also a necessity. Because it is actually cut off from the dollar and the euro by the imposed sanctions. There has long been a cold war for economic supremacy between China and the US. But Russia, China, like the rest of the BRICS countries, depend on technology and trade with the EU and the US. And without these technologies, they will not develop rapidly. Therefore, not everything is as simple as it seems at first glance. Each member of the BRICS will still have their own interests. So I don't think they will succeed.

I admit to you that in terms of technology, the US and EU are superior at the moment. But the world doesn't work that way, all need each other, and each has a strength, no one monopolizes everything. China and India are the two most populous countries in the world, they have an abundant labor force, and Russia has huge energy resources. Not to mention, we can see China's technology is constantly developing, it is only a matter of time before they surpass the US or EU.
It is extremely difficult to get rid of dependence on the hundred-year-old USD empire, but nothing is impossible, and no one stands on top of the glory forever.

[DrBeer]

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.

Perhaps the desire of the BRICS countries to get rid of the dollar is indeed there. Russia, for example, has not only a desire, but also a necessity. Because it is actually cut off from the dollar and the euro by the imposed sanctions. There has long been a cold war for economic supremacy between China and the US. But Russia, China, like the rest of the BRICS countries, depend on technology and trade with the EU and the US. And without these technologies, they will not develop rapidly. Therefore, not everything is as simple as it seems at first glance. Each member of the BRICS will still have their own interests. So I don't think they will succeed.

I admit to you that in terms of technology, the US and EU are superior at the moment. But the world doesn't work that way, all need each other, and each has a strength, no one monopolizes everything. China and India are the two most populous countries in the world, they have an abundant labor force, and Russia has huge energy resources. Not to mention, we can see China's technology is constantly developing, it is only a matter of time before they surpass the US or EU.
It is extremely difficult to get rid of dependence on the hundred-year-old USD empire, but nothing is impossible, and no one stands on top of the glory forever.

I want to remind you that we live in the 21st century. Until the 20th century, territories, resources and population were indeed a factor in the power and strength of the state. These are the resources necessary to provide for themselves and export, and the ability to wage large-scale wars, and the ability to create huge problems for any attacker due to a large territory ... But it's all over .. Now the world has moved to a new level - from a resource economy to a technological economy, and resources .. have become just resources that technologically backward countries, with the help of technologies from highly developed countries, extract, process, and for the currency of developed countries - they will also be happy to package them beautifully for the customer
and if technologically the rest of the country is left without technology and markets, they begin to degrade very quickly. Well, this is how the competitive system of the world works, whether we like it or not....

I can give you a great example - the USSR. The country was huge, 250 million people, all the same resources, the strongest army in the world, nuclear weapons .... And where is it now? What happened to her? I myself, inside the USSR, lived and saw how it sank to the bottom ... And neither the territory, nor the resources, nor its technologies, which, although noticeably lagged behind the Western ones, saved it!

And now let's take Russia and its energy resources as an example. In 2022, their "happiness" and "greatness" is over! Why ? Gone are the markets for resources. The technological backwardness of the economy and the stupidity of the country's leadership have led to the fact that Russia is now physically unable to store excess gas and oil (the storage system has not been built, and after the sanctions it is no longer possible to build). It is possible to conserve sources, but it is no longer possible to reactivate them - Western drilling technologies and related technologies are needed. And now she is forced to sell these resources for a penny to her, either to her "big brothers" or to her "owners" - China and India ...

[ancafe]

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

The dominance of the US dollar will not be reduced by the existence of the BRICS, an alliance of countries that are members of the global trade plan are only included in the category of a few countries. Dependence on the US dollar is also very difficult for other countries to cancel cooperation with the United States, on the other hand there are special agreements that are regulated when carrying out cooperation.

Everything can happen beyond the predictions or observations made by experts, but as far as I know the strength of the United States in building cooperation with other countries in the field of global trade is very difficult to break, they really control several important sectors now and decades of their dominance no one has been able to match. The strength of the countries that are members of the BRICS will also determine how far this project can go, while in it we see that only Russia and China have the capability, while the economic strength of countries that have the possibility to join is unclear.