Topic: Could there be a new financial system not dependent on USD? - page 4. (Read 953 times)

There are a couple of simple questions here that no one can answer without using populist ideas and slogans:
- why would India and/or China abandon the dollar?
- what economic benefits will India and/or China get by changing the international currency
- and what can the international reserve currency be exchanged for?

Just 2 facts:
- India buys oil from Russia for Indian rupees, and resells it for DOLLARS.
- China is not abandoning the dollar. China is trying to find "donor" countries that will accept the yuan, replacing the dollar with it, which will take over part of the inflationary processes within China.

There are a couple of simple questions here that no one can answer without using populist ideas and slogans:
- why would India and/or China abandon the dollar?
- what economic benefits will India and/or China get by changing the international currency
- and what can the international reserve currency be exchanged for?

Just 2 facts:
- India buys oil from Russia for Indian rupees, and resells it for DOLLARS.
- China is not abandoning the dollar. China is trying to find "donor" countries that will accept the yuan, replacing the dollar with it, which will take over part of the inflationary processes within China.

In short , no.Highly doubtful anything will collapse the USD. Europe already uses the Euro thats fine on its own.
We are talking about 2 major nations, China and India. If they would refuse the US$ then it might cause a significant price shift.

But lets be real, China and India cant afford to play that game.Russia might , South Africa sure who cares. But the two behemoths no way.

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.

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

It's true that the US dollar is currently the dominant currency in the world, but history has shown that currencies can rise and fall in dominance. While it may be hard to imagine a financial system not dependent on the dollar, it's not impossible and "when it happens" it may just take time and change in global economics and politics. As with anything, nothing lasts forever and there will always be change. I think The key is to stay informed and adaptable to these changes.

We were born and raised in an era where USD dominates the world, so it is a myth to hear about getting rid of USD and not depending on it. But if we learn about the history of world currency, before the USD dominated the world, we also had the currencies of England and France...that once dominated the world. That means that the USD weakening or being replaced is not impossible, anything will happen, but the question is when it will happen. I believe everything has a lifespan, nothing lasts forever, and higher mountains will have higher mountains.

It is hard to imagine a financial system that is not dependent on the dollar. There is a lot of talk about de-dollarization, but the dollar is not particularly depreciating in different countries, which means that there is still a demand for the dollar.

I started to feel like its now to challenge domination of USD in global world. Its obvious economic capacity of BRICS countries except China is nothing. Its all about China's growth. We are truly in a time where world is becoming multipolar. For better or worse, I don't exactly know what we are going to experience. But I think countries should be able to do trade between each other on Yuan, Ruble, Euro, Swiss Franch whatever. Different currencies. USD should lose power.

It is true that nothing was given to them and they have earned the power they got by outmaneuvering their opponents, however the manufacturing sector on the United States is not as powerful as it was decades ago and recently they have printed too much money as well, so it is natural that other countries are looking for alternatives as they are realizing that this gives too much power to the United States and this power can be used against them and thwart their ambitions of expansion.

Russia would love that, I am sure that after their own ruble got screwed so hard and they are getting crashed in the markets and basically the whole economy of the nation is crashing, along with Chian who wanted to kill muslims in their own nation and attack taiwan, and then got their factories switched for pakistani ones or whatever, and started to have financial troubles because of that, wants to see Dollar have some trouble too.

But you know what? America made that money by selling stuff to others, and they are powerful and even though I dislike them as well, they at least earned it, the hard way, and they will keep being the strongest. Plus we need at least one strongest, so you gotta pick one, I think Euro would have been better but Dollar ain't bad too.