Ditching US dollar

[DrBeer]

.....

India, China and Brazil could singlehandlely synchronize their economies and their centrals banks to create the BRICS currency and only them being allowed to control the supply of the FIAT while the rest of the members get strong enough to benefit from it. China's problem would be that they cannot allow their official currency to gain much value, otherwise they would lose competitivity in the international manufacturing markets, I am sure the rest of the BRICS would not feel happy about China devaluing their common currency for the sake of then own competitivity, because of it, it is very unlikely China will replace the Yuan. If China does not use the new currency then it would be fair to say we would be talking about a project without a real porpuse if one of the biggest members of the organization won't even give use to their initiative of FIAT.
Because of things like that is why I highly doubt we will ever see that new FIAT soon and the hegemony of the American dollar will continue for many years. Even if some gold backed currency appeared, that initiative would still require trust in the gold reserves, which not all countries have.

That doesn't sound bad, but there's a nuance. The nuance is in the PURPOSE of the participants. If India really had an interest in creating an economic union, to obtain economic benefits in the region, China - only personal benefit, which tried to realize through the "hype" of the slogan "abandon the dollar!", but according to the Chinese idea - further followed "yuanization", under the slogan of "single currency"..... But the plan to "save the Chinese economy at the expense of the pockets and economies of the members of the union" failed. And now that there are problems among the BRICS members (India-China, Russia-India, Russia-China, Argentina, ....) it seems to me that it is difficult to unite them not only by a common currency but also as a full-fledged union. Because some of them have already shown that they will "pull the blanket over themselves" ignoring the interests of other participants. So most likely BRICS is waiting for "reforming"

[1715247305]

1715247305

[1715247305]

1715247305

[1715247305]

1715247305

[Hispo]

.....

India, China and Brazil could singlehandlely synchronize their economies and their centrals banks to create the BRICS currency and only them being allowed to control the supply of the FIAT while the rest of the members get strong enough to benefit from it. China's problem would be that they cannot allow their official currency to gain much value, otherwise they would lose competitivity in the international manufacturing markets, I am sure the rest of the BRICS would not feel happy about China devaluing their common currency for the sake of then own competitivity, because of it, it is very unlikely China will replace the Yuan. If China does not use the new currency then it would be fair to say we would be talking about a project without a real porpuse if one of the biggest members of the organization won't even give use to their initiative of FIAT.
Because of things like that is why I highly doubt we will ever see that new FIAT soon and the hegemony of the American dollar will continue for many years. Even if some gold backed currency appeared, that initiative would still require trust in the gold reserves, which not all countries have.

That doesn't sound bad, but there's a nuance. The nuance is in the PURPOSE of the participants. If India really had an interest in creating an economic union, to obtain economic benefits in the region, China - only personal benefit, which tried to realize through the "hype" of the slogan "abandon the dollar!", but according to the Chinese idea - further followed "yuanization", under the slogan of "single currency"..... But the plan to "save the Chinese economy at the expense of the pockets and economies of the members of the union" failed. And now that there are problems among the BRICS members (India-China, Russia-India, Russia-China, Argentina, ....) it seems to me that it is difficult to unite them not only by a common currency but also as a full-fledged union. Because some of them have already shown that they will "pull the blanket over themselves" ignoring the interests of other participants. So most likely BRICS is waiting for "reforming"

Not idea what that reform could be, by the way. Besides the different geopolitical objectives of the members of the BRICS, one must also keep in mind the traditional and cultural differences between those states, again, they are too heterogeneous. It is not like the United States or the European Union, they have had decades of association and opportunities to find common objectives. Actually, there will be topics on where the BRICS may not be able to get together towards a coordinated effort. For example, the energy transition.
Russia is one of the biggest countries by reserves of gas and energy in general, while China is trying to get dominance over the market of electrical vehicles and renewable energy generation. Obviously, those are two models of energy generation which will sooner or later collide. China could try to take over the market of electrical cars in India and both China and India being the main consumers of energy within BRICS, it would translate to a existential threat against the Russian economy in the long term.

That is only one example, there are more which are less obvious.

[jossiel]

It always has a big impact against the US economy and that's why they are doing all things to revert back the countries that are ditching their dollar.

I've read it from someone that in China, it's a total obvious. Most citizens have only a few choice to pay their things.

Cash, alipay, wechatpay and the other Chinese payment processing apps if I've missed one.

[|MINER|]

It has both good and bad sides.  It is useful for Russia and Iran but they need to introduce this currency in the world market. Otherwise it will be difficult for them to do business. Their currency should be recognized like dollar otherwise how many natives or theirs will use this currency.  It is difficult but if you try it will definitely become easier to get familiar with.  If this can be implemented, their costs will be reduced and their own recognition will be increased.  However, it will be very difficult to make it popular around the world because most of the countries believe in the dollar.

[DrBeer]

.....

India, China and Brazil could singlehandlely synchronize their economies and their centrals banks to create the BRICS currency and only them being allowed to control the supply of the FIAT while the rest of the members get strong enough to benefit from it. China's problem would be that they cannot allow their official currency to gain much value, otherwise they would lose competitivity in the international manufacturing markets, I am sure the rest of the BRICS would not feel happy about China devaluing their common currency for the sake of then own competitivity, because of it, it is very unlikely China will replace the Yuan. If China does not use the new currency then it would be fair to say we would be talking about a project without a real porpuse if one of the biggest members of the organization won't even give use to their initiative of FIAT.
Because of things like that is why I highly doubt we will ever see that new FIAT soon and the hegemony of the American dollar will continue for many years. Even if some gold backed currency appeared, that initiative would still require trust in the gold reserves, which not all countries have.

That doesn't sound bad, but there's a nuance. The nuance is in the PURPOSE of the participants. If India really had an interest in creating an economic union, to obtain economic benefits in the region, China - only personal benefit, which tried to realize through the "hype" of the slogan "abandon the dollar!", but according to the Chinese idea - further followed "yuanization", under the slogan of "single currency"..... But the plan to "save the Chinese economy at the expense of the pockets and economies of the members of the union" failed. And now that there are problems among the BRICS members (India-China, Russia-India, Russia-China, Argentina, ....) it seems to me that it is difficult to unite them not only by a common currency but also as a full-fledged union. Because some of them have already shown that they will "pull the blanket over themselves" ignoring the interests of other participants. So most likely BRICS is waiting for "reforming"

Not idea what that reform could be, by the way. Besides the different geopolitical objectives of the members of the BRICS, one must also keep in mind the traditional and cultural differences between those states, again, they are too heterogeneous. It is not like the United States or the European Union, they have had decades of association and opportunities to find common objectives. Actually, there will be topics on where the BRICS may not be able to get together towards a coordinated effort. For example, the energy transition.
Russia is one of the biggest countries by reserves of gas and energy in general, while China is trying to get dominance over the market of electrical vehicles and renewable energy generation. Obviously, those are two models of energy generation which will sooner or later collide. China could try to take over the market of electrical cars in India and both China and India being the main consumers of energy within BRICS, it would translate to a existential threat against the Russian economy in the long term.

That is only one example, there are more which are less obvious.

I absolutely agree with you! But I’ll add on my own behalf - when people unite for creation and a common goal, they can find compromises if they have different cultures, histories, religions, skin colors, traditions... If the goal is development, progress, creation - you can “put aside” disagreements . In general, BRICS was originally created as an alliance outside of other alliances, and it consists of countries that are not members of large economic associations such as the EU, or some kind of alliance of the USA/Canada/Britain/Australia. And in general, the BRICS participants could continue to develop their economies and mutually beneficial cooperation... But some decided to start manipulation... In my opinion, in this format, BRICS will not be able to achieve its goals. The solution is to either throw out the “toxic” participants or create a new union

[cozytrade]

I think the introduction of the BRICS currency instead of the dollar in the world market will not be an easy journey for the BRICS countries. Efforts by the BRICS countries to use the BRICS currency instead of the dollar in global markets have been ongoing for a long time. As new countries join the BRICS alliance, the debate between BRICS countries is also increasing. So I think, BRICS will not be able to achieve its goals in this situation. If BRICS really wants to achieve its goals, BRICS countries should rethink. Considering if they can correct themselves then maybe the BRICS currency can influence the dollar. However, almost all countries of the world depend on the US dollar and the dollar is still dominating the world market. Breaking the dollar's hegemony in world markets is a "matter" of major challenges for the BRICS.

[dderekwalcott]

Iran and Russia are really significant players in the global oil market in my opinion.They both have oil and natural gas mines and extensive oil reserves and are major exporters of oil and natural gas. Even after America's economic sanctions, they have proved themselves economically strong to the whole world. What they did not only say through words but also proved through acts
Iran faces economic challenges, including sanctions that have affected its oil exports and overall economic performance. On the other hand, Russia has a diversified economy with oil and gas as important components, and is a member of the BRICS group (Brazil, Russia, India, China, and South Africa) which represents the main emerging national economies.
The dynamic nature of geopolitics and the global economy and the current economic situation in both Iran and Russia, as well as their evolving relationship and Iran's potential participation in BRICS, has given the US a tough economic warning that is a real concern for the US dollar.

[DrBeer]

Iran and Russia are really significant players in the global oil market in my opinion.They both have oil and natural gas mines and extensive oil reserves and are major exporters of oil and natural gas. Even after America's economic sanctions, they have proved themselves economically strong to the whole world. What they did not only say through words but also proved through acts
Iran faces economic challenges, including sanctions that have affected its oil exports and overall economic performance. On the other hand, Russia has a diversified economy with oil and gas as important components, and is a member of the BRICS group (Brazil, Russia, India, China, and South Africa) which represents the main emerging national economies.
The dynamic nature of geopolitics and the global economy and the current economic situation in both Iran and Russia, as well as their evolving relationship and Iran's potential participation in BRICS, has given the US a tough economic warning that is a real concern for the US dollar.

The misconception is strong enough. And easily provable in terms of being delusions
1. Iran is a major supplier of oil. But Iran behaves "decently" in the market and does not try to engage in economic terrorism, as for example Russia tried to do. Because it understands perfectly well that Iran's economy depends VERY much on its sales, so it tries not to "get into trouble"

2. russia is indeed one of the largest owners of oil and gas reserves. BUT. After the second stage of the terrorist war unleashed against Ukraine, Russia has lost almost all of its European gas market (more than 90% of what it had before 2022), and is forced to sell oil at huge discounts to China and India. And for illiquid currency. The truth "in public" describes how much they earn. Even though even official Russian ministers are squealing about the fact that, for example, the revenues of the oil and gas sector have fallen from 30 to 60%, and the remainder of production should be reoriented to the domestic market, since there is little room to sell them. you can even read the official reports of the Central Bank of russia, there are many interesting things about the "stability of the economy". 

The stability of the Iranian economy is best told by their local currency, which became "the most useless currency in the world" by the end of 2023 ...

The only thing that Iran and Russia have in common is terrorism, which is what they both got sanctions for, and also that both countries need ... DOLLAR :

[WillyAp]

Ditching the US$

https://www.investopedia.com/articles/forex/040915/countries-use-us-dollar.asp

65 countries use the US Dollar, and a dozen wants to rely less on it.
Calling that ditching is highly delusional.

[Mame89]

It always has a big impact against the US economy and that's why they are doing all things to revert back the countries that are ditching their dollar.

I've read it from someone that in China, it's a total obvious. Most citizens have only a few choice to pay their things.

Cash, alipay, wechatpay and the other Chinese payment processing apps if I've missed one.

Of course the presence of BRICS will have a big impact on the US economy, the dollar will weaken because many countries want to abandon the dollar. However, for me personally as an Asian, I really agree with the birth of Brics because countries in the world can be more independent in determining the economy in their own country and are no longer afraid of America and Europe. because it is under a new umbrella, namely BRICS.

I also believe the world has changed over time. The US will not dominate the world forever. China is getting bigger. Many figures say that China will become a world superpower in the future.

[DrBeer]

It always has a big impact against the US economy and that's why they are doing all things to revert back the countries that are ditching their dollar.

I've read it from someone that in China, it's a total obvious. Most citizens have only a few choice to pay their things.

Cash, alipay, wechatpay and the other Chinese payment processing apps if I've missed one.

Of course the presence of BRICS will have a big impact on the US economy, the dollar will weaken because many countries want to abandon the dollar. However, for me personally as an Asian, I really agree with the birth of Brics because countries in the world can be more independent in determining the economy in their own country and are no longer afraid of America and Europe. because it is under a new umbrella, namely BRICS.

I also believe the world has changed over time. The US will not dominate the world forever. China is getting bigger. Many figures say that China will become a world superpower in the future.

And can you give me a list of countries that really want to abandon the dollar ?
Please provide a list of 3 columns:
- Country name
- GDP of the country
- Percentage of world GDP ?

It will be very interesting to discuss this list, because I can guess who you would like to put there, but.... There are nuances there that are easy to check and make sure they don't want to abandon the dollar

Very much looking forward to the list

[Albarq]

In today's world, it is indeed difficult for economic problems to carry out trade without the US dollar, but the most that can be reduced is of course the presence of BRICS will have a big impact on the US economic cycle because world countries will be more able to be independent. The formation of BRICS, with many countries abandoning the US dollar, has a lot of influence. of their country's dependence so that the dollar still dominates the world market.

[peter0425]

Of course the presence of BRICS will have a big impact on the US economy, the dollar will weaken because many countries want to abandon the dollar.

That is exactly what the other countries want to happen however I don’t think the us dollar is that weak to be brought down immediately in no time. We’ll probably see some resistance from the us government in an attempt to keep their economy afloat.

I also believe the world has changed over time. The US will not dominate the world forever. China is getting bigger. Many figures say that China will become a world superpower in the future.

They already are one of the big countries out there alongside the US. They might not be the strongest currency but they are dominating a lot of other sectors. Land, political power and just economic activity are some of the things where China has always excelled in. I do not want to be under a specific global currency because even if it’s not US we are still basically following one country. I do hope that my country’s currency becomes huge as much as other countries and not be left out once again.