This de-dollarization attempt by the BRICS countries have been around for years, but it has only recently been aggresively pushed by some of the countries in BRICS.
One of the major reasons why they are pushing for it are the sanctions from the West (including the USA) .. so these countries wants to ditch SWIFT payments to bypass the restrictions that are applied to their international transactions.
Topic: Ditching US dollar - page 2. (Read 520 times)
They have already tried two currencies right? Maybe I'm wrong and it is just one currency but my point is, if they want to create a new power by combining these countries, then currency should not be an issue if it is not a native currency used by one particular country. Chinese Yuan and Indian rupee has already been used for the transactions and it didn't work out. And if they are trying to create a new power, they won't stop trying which will be the best. Maybe an entire new currency backed by something else.
At this point, whether you like it or not it has become a trial and error concept already. Maybe not the first try but the second try they will come back after doing everything perfectly. It's just how I think and it does not have to be 100% accurate. It could also play out the way you have described it. So let's see what the future holds for them.
I would guess that it is not really going to work out in the end because the whole world structure is based on the dollar. Like when you are considering what the barrel of an oil is, do you really consider it in any other currency? You talk about it in dollar terms, that's just the reality and we need to consider that as the most important thing.At this point, whether you like it or not it has become a trial and error concept already. Maybe not the first try but the second try they will come back after doing everything perfectly. It's just how I think and it does not have to be 100% accurate. It could also play out the way you have described it. So let's see what the future holds for them.
I personally believe that we need to consider dollar as there to stay and not going to leave anytime soon. And the only way dollar would not be used as the biggest currency, would not come from other nations, it would only be possible if the empire falls within itself, you do not attack and defeat an empire, you let it destroy itself and then slowly it will destroy itself overtime, so USA would tell you when dollar is bad.
If I'm not wrong then both of those countries are in the group of country that have bad relations with the United States and they relations will continue to suffer due to difference in opinion and use of power. It's strange to see that Russia and Iran are still using US dollar to do their trading but surely the USD is the international currency and using it for trading makes sense.
However, now if they switch to BRICS or may accept each other's own fiat currencies for trading purpose then it's going to be a good thing for those countries but I don't think that it will impact the dollar in any way at all. the US dollar will continue to show its dominance but maybe in future BRICS might compete it in ASIAN zone.
The decreasing dominance of the US dollar is constantly on the agenda, and the US dollar completely dominated the markets in previous years. Now the countries in BRICS will abandon the dollar for trade, perhaps other states will follow suit. Many people say that the US dollar will become worthless in the very near future. The US dollar will definitely be affected by this situation, but the important thing is how much it will be affected. However, now if they switch to BRICS or may accept each other's own fiat currencies for trading purpose then it's going to be a good thing for those countries but I don't think that it will impact the dollar in any way at all. the US dollar will continue to show its dominance but maybe in future BRICS might compete it in ASIAN zone.
Good luck ditching the widely used currency for global markets because doing so would effectively shut them out of a lot of countries that won't compromise to their preferred currency, isn't that what's going to happen to them right?
They could use the $ and their homebrew Currency.
Why only use one?
~Snip
They have already tried two currencies right? Maybe I'm wrong and it is just one currency but my point is, if they want to create a new power by combining these countries, then currency should not be an issue if it is not a native currency used by one particular country. Chinese Yuan and Indian rupee has already been used for the transactions and it didn't work out. And if they are trying to create a new power, they won't stop trying which will be the best. Maybe an entire new currency backed by something else. At this point, whether you like it or not it has become a trial and error concept already. Maybe not the first try but the second try they will come back after doing everything perfectly. It's just how I think and it does not have to be 100% accurate. It could also play out the way you have described it. So let's see what the future holds for them.
Good luck ditching the widely used currency for global markets because doing so would effectively shut them out of a lot of countries that won't compromise to their preferred currency, isn't that what's going to happen to them right? They have less countries to trade with if they ditch US dollar. Also, if they ever do that, wouldn't US Foreign Affairs or some US agency that deals with this will do their work on trying to make sure that this plan would be a failure for those that's going to participate right? One thing that I know about US is that it's got a really good foreign policy measures so I know that this isn't going to go as smoothly as planned.
Some of these countries are not just experimenting, they have tried several times in the past years and they are working seriously by continuing to recruit countries that are fed up with having the dollar for various reasons. They are using new things like using their local currency for transactions, and the Yuan is being offered among the BRICS as a means of transaction.
Replacing the top of the economic chain is not an easy thing to do in just a few years, they need a long time and need a lot of effort to reach the highest level as the top economy and dominate the global economy with a new payment system and tool to become a global currency that is considered better than before.
To be honest, there is something that I am afraid of in global movements like this, judging from every century of leadership transitions as the ruler of the world, always the highest country will not be willing to give up its throne just like that, this will cause conflicts that can trigger major conflicts like before. I have noticed that political tensions are heating up, and countries are increasingly showing their strength to each other.
Conflicts are definitely coming and some may say the current instability around the world is just a symptom of this, so we cannot really expect to see some kind of orderly transition from the current system to a new one, assuming it were to happen soon.Replacing the top of the economic chain is not an easy thing to do in just a few years, they need a long time and need a lot of effort to reach the highest level as the top economy and dominate the global economy with a new payment system and tool to become a global currency that is considered better than before.
To be honest, there is something that I am afraid of in global movements like this, judging from every century of leadership transitions as the ruler of the world, always the highest country will not be willing to give up its throne just like that, this will cause conflicts that can trigger major conflicts like before. I have noticed that political tensions are heating up, and countries are increasingly showing their strength to each other.
Besides we do not know what that new system will entail, as if there is any indication it does not seems as if governments want to leave the fiat system behind and this is simply a battle to see who is at the top, but even if the system changed it is unlikely we will move towards something that benefited the people, and instead we may see even more restrictions imposed upon us with the use of CBDCs.
It's all about trial and error. If they really want to replace the US dollar, they will have to come up with something new and they will have to use it and find out what's lacking in that. They can achieve success after many trials and fixing the errors. It's not going to be a easy journey. But if they really want, they can be successful.
Don't get me wrong, the US dollar is still dominating the whole world. But power speaks for itself. BRICS is recruiting more countries. If they all come together to create a new power, I think they can success. But that's still a big if.
The US. dollar has its purchasing power decreases over time. However, is it make this fiat currency worse than other fiat currencies from other central banks?Don't get me wrong, the US dollar is still dominating the whole world. But power speaks for itself. BRICS is recruiting more countries. If they all come together to create a new power, I think they can success. But that's still a big if.
There is nothing wrong to make trials and errors to dedollarisation because some nations want to build up something which can be tools for them to break the domination of USA. and its fiat currency. Will the succeed or fail, with BRICS is a biggest attempt so far, we will see it in future like next 10 years?
I would be willing to speculate that not even in this incoming year the BRICS will issue their currency, they are either trying to recruit more members or they realize their are such a heterogenous group of countries that a common currency would not benefit them as much as people believe.
To succeed, those nations participate in the attempt must have their strong economy. China and Russia are one of countries with big economy sizes but I disagree if saying their economies are sustainable and strong. China is affected by deflation which is worse than inflation and Russia solely relies on their income from oil sales and energy industry.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.
It's all about trial and error. If they really want to replace the US dollar, they will have to come up with something new and they will have to use it and find out what's lacking in that. They can achieve success after many trials and fixing the errors. It's not going to be a easy journey. But if they really want, they can be successful.
Don't get me wrong, the US dollar is still dominating the whole world. But power speaks for itself. BRICS is recruiting more countries. If they all come together to create a new power, I think they can success. But that's still a big if.
The US. dollar has its purchasing power decreases over time. However, is it make this fiat currency worse than other fiat currencies from other central banks?Don't get me wrong, the US dollar is still dominating the whole world. But power speaks for itself. BRICS is recruiting more countries. If they all come together to create a new power, I think they can success. But that's still a big if.
There is nothing wrong to make trials and errors to dedollarisation because some nations want to build up something which can be tools for them to break the domination of USA. and its fiat currency. Will the succeed or fail, with BRICS is a biggest attempt so far, we will see it in future like next 10 years?
I would be willing to speculate that not even in this incoming year the BRICS will issue their currency, they are either trying to recruit more members or they realize their are such a heterogenous group of countries that a common currency would not benefit them as much as people believe.
To succeed, those nations participate in the attempt must have their strong economy. China and Russia are one of countries with big economy sizes but I disagree if saying their economies are sustainable and strong. China is affected by deflation which is worse than inflation and Russia solely relies on their income from oil sales and energy industry. 
I am still pretty skeptical on the USD being replaced in the short of mid term by countries within the BRICS or outside the BRICS, it has been decades of dominance by the United States and its allies, it wont easy to break free from it, not as easy has many people on this forum make it sound.
It's all about trial and error. If they really want to replace the US dollar, they will have to come up with something new and they will have to use it and find out what's lacking in that. They can achieve success after many trials and fixing the errors. It's not going to be a easy journey. But if they really want, they can be successful. Don't get me wrong, the US dollar is still dominating the whole world. But power speaks for itself. BRICS is recruiting more countries. If they all come together to create a new power, I think they can success. But that's still a big if.
Replacing the top of the economic chain is not an easy thing to do in just a few years, they need a long time and need a lot of effort to reach the highest level as the top economy and dominate the global economy with a new payment system and tool to become a global currency that is considered better than before.
To be honest, there is something that I am afraid of in global movements like this, judging from every century of leadership transitions as the ruler of the world, always the highest country will not be willing to give up its throne just like that, this will cause conflicts that can trigger major conflicts like before. I have noticed that political tensions are heating up, and countries are increasingly showing their strength to each other.
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It's all about trial and error. If they really want to replace the US dollar, they will have to come up with something new and they will have to use it and find out what's lacking in that. They can achieve success after many trials and fixing the errors. It's not going to be a easy journey. But if they really want, they can be successful. Don't get me wrong, the US dollar is still dominating the whole world. But power speaks for itself. BRICS is recruiting more countries. If they all come together to create a new power, I think they can success. But that's still a big if.
Actually, I am not sure whether it is about trial and error, when comes to macroeconomics and issuing a currency which is supposed to gain more trust than the United States Dollar then the BRICS is supposed to plan and execute all in the perfect way, behave they may have not another opportunity to try. Because what would happen if the tried once and people would not trust and rejected the idea of their currency because they did something wrong? If the BRICS members tried againz then the trust would be already lost and even fewer nations (non-members) would be willing to give BRICS' currency a chance.
I would be willing to speculate that not even in this incoming year the BRICS will issue their currency, they are either trying to recruit more members or they realize their are such a heterogenous group of countries that a common currency would not benefit them as much as people believe.
I am still pretty skeptical on the USD being replaced in the short of mid term by countries within the BRICS or outside the BRICS, it has been decades of dominance by the United States and its allies, it wont easy to break free from it, not as easy has many people on this forum make it sound.
It's all about trial and error. If they really want to replace the US dollar, they will have to come up with something new and they will have to use it and find out what's lacking in that. They can achieve success after many trials and fixing the errors. It's not going to be a easy journey. But if they really want, they can be successful. Don't get me wrong, the US dollar is still dominating the whole world. But power speaks for itself. BRICS is recruiting more countries. If they all come together to create a new power, I think they can success. But that's still a big if.
BRICS currency is something meant for international trades on very large scales (trillions of dollars) between countries that is currently taking place using dollar. That is why its creation will have a negative impact on US dollar as it will lose its demand and with dollar's massive circulating supply and US unimaginable national debt the dollar value could crumble.
My guess is that there won't happen much. The US stands for stability, or at least for more stability than the BRICS States.
BRICS States are a club of paria States. Their wheeling and dealing is not that big. Take away China and BRICS is nowhere near their numbers.
Why do you think it is trillions of $ in trades?
South Africa is having not even 1% of the trade: https://oec.world/en/profile/bilateral-country/usa/partner/zaf
Of course it's going to badly impact the US dollar, just how severe should be the question you should be asking.
It won't as the poorest citicens won't use that BRICS,
40% but 80% of the poorest citicens live in the BRICS countries,
In any case BRICS and its currency has nothing to do with "citizens" and their day to day medium of exchange. None of them are using dollar today and they won't start using BRICS currency in the future either.
BRICS currency is something meant for international trades on very large scales (trillions of dollars) between countries that is currently taking place using dollar. That is why its creation will have a negative impact on US dollar as it will lose its demand and with dollar's massive circulating supply and US unimaginable national debt the dollar value could crumble.
Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. Russia is also part of BRICS while Iran will join in the Jan 2024.
Now news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?
In my view, this will weaken the dollar and this is the aim of the BRICS itself. A very good strategy, weakening the US is not through war, simply by suppressing the dominance of the US dollar, then US dominance will also decrease because its economy will weaken. It is possible that the BRICS countries consider dollar domination to be the same as colonialism, especially since recently America has seemed arrogant and treated unfairly towards countries other than Nato.Now news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?
I consider this a mutual progress, it should have been from the beginning, so that there would be no pressure to suppress interests because they control the world currency. But it would be even better if you used bitcoin or gold for international transactions.
India and China have already tried it and failed to do that due to the reason that local currencies are bad for trades. You can create money out of thin air and for this reason it is hard to use them for international trades.
If they are going to do the trades internally, maybe they can be successful at that but not possible while doing it internationally.
If they are going to do the trades internally, maybe they can be successful at that but not possible while doing it internationally.
The United States dollar can also be created out of thin air, by the way, all FIAT currencies can be created out of thin air just like that if their central banks believe it is convenient to handle their economy and safe rough times. Actually, if you see the situation which was created because the COVID pandemic, you could see at the example which was set by the government of the United States printing money out of nowhere so it could be provided in form of stimulus, so people could afford food and shelter during some months. I recall it those were up to 2000$ which were given per person.
In the case of India and China, if the problem is liquidity then it would take the Yuan to further expand its influence in other countries in Africa and LatinAmerica, so whoever gets paid in Yuans could easily get the products and services they need from other countries besides China, without having to buy dollars again.
I am still pretty skeptical on the USD being replaced in the short of mid term by countries within the BRICS or outside the BRICS, it has been decades of dominance by the United States and its allies, it wont easy to break free from it, not as easy has many people on this forum make it sound.
Is Iran and Russia still trading with the US dollars? How can these two nations known for their anti-western stance still be trading in the US dollars now? They should have stopped trading with the USD a long time ago because the US has made them suffer from economic hardship because of sanctions.
Well here we go,the speech for the followers and the reality.
Welcome to the reality.
But still we know everything is not last nature keep bring changes so we can hope for more in coming years and Iran, Russia and China are trying to do few things which are surely never been easy but important, and we have to wait for the better implemented which are more important how can they do this all it's also important today we have new Argentina is not going to join BRICS with few more announcements can appear in next few days as these changes are also can happen.
Is Iran and Russia still trading with the US dollars? How can these two nations known for their anti-western stance still be trading in the US dollars now? They should have stopped trading with the USD a long time ago because the US has made them suffer from economic hardship because of sanctions.
Well here we go,the speech for the followers and the reality.
Welcome to the reality.
I don't know how successful they will be on this matter and will it actually have an impact on the US dollar. Using local currencies for trades can create many problems and conflicts between those countries. They might not be able to keep the relationship that they are trying to create. If they came up with a new currency backed up by something valuable, only then they can stand on the similar ground.
India and China have already tried it and failed to do that due to the reason that local currencies are bad for trades. You can create money out of thin air and for this reason it is hard to use them for international trades.
If they are going to do the trades internally, maybe they can be successful at that but not possible while doing it internationally.
India and China have already tried it and failed to do that due to the reason that local currencies are bad for trades. You can create money out of thin air and for this reason it is hard to use them for international trades.
If they are going to do the trades internally, maybe they can be successful at that but not possible while doing it internationally.
Iran and Russia both are big source of oil, supplying oil to many countries. Both countries are economically strong and have a very good relationship. Russia is also part of BRICS while Iran will join in the Jan 2024.
Now news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?
Of course it's going to badly impact the US dollar, just how severe should be the question you should be asking. These countries that have become part of the BRICS alliance do not have the best relationships with the US ever since, and yet despite that they still depend upon the US economy a great deal. So in that regard I still think there will be a substantial impact upon the US dollar should they continue with the ditching of USD. One can argue that they could bar the US from receiving export and resources like oil, which will severely affect the US economically, but I don't think it's oil that will be the biggest denominator in this battle of attrition really. Especially when the world's turning towards electric vehicles and everything that's automated. Now news come out that both countries are trying to ditch US dollar for which they have now planned to trade in local currencies. what do you think this movement will help both countries? will It has any bad impact on US dollar?
I think what could really affect the US economy here is the prospect of a formidable foe that could thwart the western superpower economically and in the military sector. Much of the countries in the BRICS have their fair share of nuclear warheads and weapons that they can detonate at their disposal and since the US is basically fighting in a 1 vs. everyone situation here, the mutually assured destruction caveat don't apply.
The following countries in BRICS possess nuclear weapons:
Russia is an international terrorist country. Yes, it can be the author of a nuclear war. But. Russia shits in front of the whole world with its "second army of the world", and "unparalleled weaponry". Russia turned out to be a fake country, as well as we can assume a strong degradation of nuclear weapons.
China is a country globally dependent on the West - investment, technology, consumer market. Do you think it is profitable for China to start a war against those who essentially created and support China's economy? !
India is an absolutely adequate country, with a western vector of development, not tainted by ties with rogue countries, which wants to develop and integrate more deeply into the WESTERN economy.
And the most important thing is that all these countries are very eager to get DOLLAR !
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