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The dominance of the US Dollar in Global Trade is an undeniable fact where most of the trade happens to use the currency in abundance
BRICS is a group of countries that includes as its name suggests, Brazil, Russia, India, China, and South Africa. Recently it is reported that Chinese experts have turned on leaders of BRICS countries with expectations from them to consider countering the US dollar, which the dragon country thinks has abusive global hegemony. However, this came along with the apparent acknowledgment that even with crucial attempts the dominance of the dollar will take time to diminish.
These Chinese experts have said to BRICS Countries that they can achieve this goal by making corrections and enhancing their trade ties along with minimizing their dependence on such a financial system where the US dollar has dominance. As per the report, the call out by the experts was made just before the virtual meeting of foreign ministers of the five countries that were scheduled to be held on 19th May. During the meeting, the agenda was to discuss the enhancement of solidarity, the building of consensus as well as giving a greater voice to emerging markets in global governance.
While making the case against the consistent dependence of BRICS Countries on the financial systems that are dominated by the United States, one of the experts from the Chinese expert panel, Cao Yuanzheng, said that the only priority of the United States is to cater is domestic needs first and it only a little concerts about the possible consequences could be drawn from their policies.
The Chairman of BOC International, Yuanzheng said that both the international transactions sector and financial markets are dominated by the US and this has shown the contradictions in making policies of the United States treat as its first goal to their domestic needs rather than international needs. Further, the expert also mentioned the recent financial bans and sanctions imposed on Russia and the freezing of previously owned ForEx and gold reserves of the United States Government give the indication that the dollar is not a neutral currency anymore.
In the meantime, the report also put some implications about the Chinese currency, the Yuan which is quite popular in different countries and regions, located alongside the routes of China’s one of the most anticipated projects Belt and Road Initiative, could be a strong alternative to the US dollar. Hence if there would be an agreement between BRICS countries, it could result in potentially increased use of the Chinese currency in several regions.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
