Malaysias Prime Minister Anwar Ibrahim met with Chinese President Xi in Beijing on March 31, where the two leaders discussed plans to weaken US dollar hegemony and even create an Asian Monetary Fund. Then, South Africa took the helm thanks to the massive discovery in the Witwatersrand Basin, now regarded today as one of the worlds greatest ever goldfields. A large and sudden jump in real interest rates could lead to a further selloff in stocks. [33] In August 2016, after inflation surged to a 6-year high, the Kazakhstan central bank governor stated that it is a necessity to kickstart dedollarisation. China and Russia are leading the pack in the de-dollarisation drive. Barbados. RCEP includes 16 country signatories and the potential pact is expected to form a union of nearly 3.4 billion people based on a combined $49.5 trillion economy, which accounts for nearly 40 percent of the world's GDP. Now it loves ICC for targeting Putin, The U.S. is spending millions on Havana Syndrome research but its not clear if it exists, World becoming more multipolar, Western hegemony declining, admits European Central Bank, Sanctions undermine hegemony of dollar, US Treasury admits, BRICS Bank de-dollarizing, promises 30% of loans in local currencies, new chief Dilma Rousseff says, US bank bailout benefited billionaires, exposing corruption: I understand why Americans are angry. [1], The U.S. dollar began to displace the pound sterling as international reserve currency from the 1920s since it emerged from the First World War relatively unscathed and since the United States was a significant recipient of wartime gold inflows. Mineral Production Value by State in 2022. [68] The system had been in development since 2014, after the United States government threatened to disconnect Russia from the SWIFT system. We should work together. India Ranked the world's sixth-largest economy, India is one of the biggest merchandise importers. In a conference in Singapore in January, multiple former Southeast Asian officials, The UAE and India are in talks to use rupees to, For the first time in 48 years, Saudi Arabia said that the oil-rich nation is. PS. But there is something more sinister behind the move seen in U.S. bonds in September. Some analysts say this partly reflects the declining role of the US dollar in the global economy, in the face of competition from other currencies used by central banks for international transactions. A new world monetary system is being set up right now which will completely kill the US dollar, which is the world's reserve currency. In March 23, 2022, Putin signed an order forbidding "non-friendly" countries (including EU countries, United States and Japan) from buying Russian gas in any other currency besides the Russian ruble in the wake of sanctions given in aftermath of 2022 Russian invasion of Ukraine [23] Saudi Arabia [ edit] AFTER 911 WHEN THE MEDIA MENTIONED OIL AND IRAQ IT HIT ME AND I WAS RIGHT!! Where are Clean Energy Technologies Manufactured? And thats just for starters. As the Financial Times acknowledged in a March report that these were historic developments and part of a transition to a multipolar currency world.The chair of the Financial Times editorial board and US editor-at-large, Gillian Tett, wrote that US banking turmoil, inflation and looming debt ceiling battle is making dollar-based assets less attractive. bitcoin under the same asset class as gold ,, a commodity but crypto is also a monetary and currency system. Just recently, Bangladesh became the 19th country to agree to bilateral trade in Indian rupees. This was largely due to the prevailing economic view at the time that inflation and real economic growth were linked (the Phillips curve), so inflation was regarded as relatively benign. In fact, in 2011, Japan and China agreed to dump the dollar and trade with their respective currencies. In fact, the new BRICs bank will function both as a bank of international settlement, as well as a lender of last resort, eliminating the need for the BIS and IMF, which currently reside under dollar dominion. Russian State Duma Deputy Chairman Alexander Babakov says the new form of fiat will likely be backed by other assets including precious metals like gold. As the name suggests, dedollarisation is a term that refers to the process wherein countries tend to reduce their reliance on the US dollar as a reserve currency, medium of exchange, and also a . Despite major structural shifts in the international monetary system over the past six decades, the US dollar remains the dominant international reserve currency. Other countries that have agreed to trade with India in rupee is Russia, Singapore, Sri Lanka, Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Seychelles, Tanzania, Uganda and the United Kingdom. The move comes as Moscow and Beijing call for de-dollarisation in the face of Western sanctions FP Explainers April 04, 2023 13:35:58 IST A commodity supercycle occurs when prices of commodities rise above their long-term averages for long periods of time, even decades. Also forecasts where this axis is headed and the implications for the monetary system and world order. Dedollarisation refers to countries reducing reliance on the U.S. dollar as a reserve currency, medium of exchange or as a unit of account. In general, commodity prices and equity valuations tend to have a low to negative correlation, making it rare to see the two moving in tandem in the same direction for any long period of time. The share of US dollar reserves held by central banks fell to 59 percentits lowest level in 25 yearsduring the fourth quarter of 2020, according to the IMFs Currency Composition of Official Foreign Exchange Reserves (COFER) survey. Last but not the least de-dollarisation could result in increased volatility in currency exchange rates, particularly during the initial phases of transition. [8], Since 2011, China is gradually shifting from trade in US dollar and in favour of Chinese yuan,[9] and in March 2018, China started buying oil in gold-backed yuan. Is there any hope for us at all? In the past, when this ratio reached such levels, commodity supercycles began. ?/ so u can spend 1 trilion every year for defence?? The US dollar's decades-old dominance as a reserve currency, medium of exchange or a unit of account has received a major challenge as more and more developing countries are calling for de . Before we delve into de-dollarisation, one has to understand how the dollar became the acknowledged currency for international trade. Indias very own Kumar Vivek, deputy commissioner at the ministry of finance, also said that there are challenges to overcome to move away from the dollar. It has been reported that in the first quarter of 2020 the share of the dollar in the bilateral trade between China and Russia fell below 50 percent for the first time. Also see: The World is Splitting Into Two Blocs, Each with Its Own Reserve Currency Because Russia was able to neuter sanctions, the Deep State had to resort to sabotage of the Nordstream 2 pipeline. As per a Reuters report, Buenos Aires said that it aims to pay $1 billion of Chinese imports in yuan instead of dollars and thereafter around $790 million of monthly imports will be paid in yuan. The International Monetary Fund (IMF) has stated that Iraq has added 36 tons of gold bullion to its reserves. Hording precious metal inflates their prices and produces shortages and waste where these metal should only be applied for industrial use. In addition, central banks (especially Russias and Chinas) have bought gold at the fastest pace since 1967 as countries move to diversify their reserves away from the dollar. Also, the most pertinent question that remain in the de-dollarisation debate is which currency replaces the US dollar. I DO agree with you that were in for interesting times ahead. Our Chart of the Week looks at the recent data release from a longer-term perspective. SWIFT", "Russia's central bank governor touts Moscow alternative to SWIFT transfer system as protection from US sanctions", "Exclusive: Russian oil firm seeks dollar alternative amid U.S. sanctions threat - traders", " SWIFT | Bigasia.ru", ": ", " , ", "Zim's dollar returns, a decade after it became worthless", "Zimbabwe heading back to US dollar transactions", "Dollar o'clock: Should Zimbabwe axe its faltering currency again? The top 20 currencies in use today are the US Dollar, Euro, British Pound, Japanese Yen, Chinese Yuan, Canadian Dollar, Australian Dollar, Swiss Franc, New Zealand Dollar. Countries in Southeast Asia are also de-dollarizing. The deal was negotiated between the state-owned China National Offshore Oil Company and the French company TotalEnergies, meaning European firms are now willing to conduct transactions in yuan. Well look at South Africa after Mr. Mandela.. all respect to this great man. Printing money just like Zambia..it went down. Meanwhile, the share of the euro has fluctuated around 20 percent, while the share of other currencies including the Australian dollar, Canadian dollar, and Chinese renminbi climbed to 9 percent in the fourth quarter (green line). All over the world economies that have not totally shot themselves in the foot by gambling in the Anglo-American casino are now moving to set up various currency exchanges by passing the dollar. In recent years, commodity prices have reached a 50-year low relative to overall equity markets (S&P 500). The media outlet added that Malaysias central bank is developing a payment mechanism so the Southeast Asian country can trade with China using its own currency, the ringgit. [67] In 2017, SPFS, a Russian replacement of the SWIFT financial transfer system, was developed by the Central Bank of Russia. April 28, 2023 12:10:40 IST, Dollars share of global reserves has declined by 11 per cent since 2016 on this adjusted basis, a report by Eurizon SLJ Asset Management said, Businesses in Bangladesh have welcomed the decision to settle trade with India in INR and taka as they think that the arrangement will reduce pressure on forex reserves and promote trade, Brazil has not joined Western nations in imposing sanctions on Russia and has refused requests to supply ammunition to Ukraine. The Association of Southeast Asian Nations (ASEAN) is meeting in Indonesia, "Top of the agenda are discussions to reduce dependence on the US Dollar, Euro, Yen, and British Pound from financial transactions and move to settlements in local currencies" https://t.co/BPMGhpgtLv, Ben Norton (@BenjaminNorton) March 31, 2023. [3], After the establishment of the Bretton Woods system, the US dollar is used as the medium for international trade. All those dollars in foreign accounts will come home, which will annihilate our monetary system. The group of five economically-aligned countries collectively known as BRICS is reportedly on the cusp of a massive expansion. I love the one where people say America was built on immigration! You can look at the modern example: Dubai, Singapore Malta all resource poor but made such modern high GDP developed countries because of the open policy. There was no legal process there was no nothing. The Malaysian leaders comments come just months after former officials in Singapore discussed what economies in the region should be doing to mitigate the risks of a still-strong dollar thats weakened local currencies and become a tool of economic statecraft. Buy Book. Kenya to start buying petroleum products with Kenyan shillings https://t.co/Q6HEcB4I6r, Peoples Gazette (@GazetteNGR) March 27, 2023. In a speech that Geopolitical Economy reported on in 2022, Dilma analyzed the US-China conflict as a rivalry of two systems, a struggle between neoliberalism and socialism. As a result, the dollar began to displace the pound sterling as the international reserve currency and the U.S. also became a significant recipient of wartime gold inflows. The infographic above uses data from Incrementum AG and Crescat Capital LLC to show the relationship between commodities and U.S. equities over the last five decades. According to the latest published data, China and Japan dumped U.S. Treasuries the most in August. Image used for representational purposes/Freepik. South Africas annual gold production peaked in 1970 at 1,002 tonnesby far the largest amount of gold produced by any country in a year. The chances of record mine output could be higher if gold prices continue to increase. The U.S. dollar has been the world's major reserve currency for decades, but that status could come under threat as "very . Frances Macron opposes US cold war on China, wants independent Europe but is it just rhetoric? ASEAN Briefing noted that Indonesia, Malaysia, Singapore, the Philippines, and Thailand agreed on this in November 2022. The dollars strength is a headache for Asian nations including Malaysia, which is a net importer of food items. A number of additional nations, including Saudi Arabia, Argentina, Iran, Indonesia, Turkey and Egypt, have reportedly expressed interest in joining the alliance. Earlier in the month, Brazil president Luiz Inacio Lula da Silva also took aim at the dollar. When Chinese President Xi Jinping visited Moscow in March, his Russian counterpart Vladimir Putin revealed that two-thirds of the countries bilateral trade is already conducted in the rouble and renminbi. USA will not be an exception of that I have no doubt.. $32 trillion in dept. Once the new system is in place, our dollar won't be needed in these countries and a new reserve currency will come into being. to U is, What about all the NUCLEAR FALLOUT that comes with all of the Vaporization that occurs!!! this is the result liberals goodie two shoes. Credit: (photo: MicroStubHub/iStock by Getty Images). [24][25], In August 2018, Venezuela declared that it would price its oil in euros, yuan, rubles, and other currencies. [59], In January 2023, Russia and Iran were planning to trade with gold backed cryptocurrencies as an alternative to US dollar. [5], Under the Bretton Woods system established after World War II, the value of gold was fixed to $35 per ounce, and the value of the U.S. dollar was thus anchored to the value of gold. YEAH BABY- MURDER IN DISGUISE IS THEIR COMIE NAME OF THEIR SICKO GAME!! [26][27], In May 2022, Egyptian Minister of Finance Mohamed Maait announced the intention to issue bonds in yuan to raise capital as an mechanism to diversify the sources of finance. If you still dont understand de-dollarisation, an influencer on TikTok has explained it, using the famous movie Mean Girls as a reference. The United States became, almost overnight, the leading financial power after World War I. This will eliminate black budgets and quickly expose any corruption to the currency and public spending. One year ago, China, along with the BRICs nations of Brazil, Russia, India and South Africa, loaned money to a new financial institution they established and labeled the BRICs bank. [41][42] In 2011, Japan made an agreement with China to trade in national currencies. just let me know when the world plans all this thermo-nuclear stuff that way me and my dogs can hop on the closest flight outta here. The next step in this war is the complete takedown of the Deep State. Yes Mr. McCormick *cues evil laugh* Mwhahahahahaha! India has been slowly moving away from the dollar. RT discussed with analysts how realistic the prospect of countries ditching the dollar is. Reuters cited Rosnefts chief executive Igor Sechin, [who] said in February that the price of Russian oil would be determined outside of Europe as Asia has emerged as largest buyer of Russian oil. It has also been reported that the BRICS collective (Brazil, Russia, India, China and South Africa) is working on a creating a new currency to facilitate trade. The king of currency, the dollar, is on shaky ground. Countries Where the US Dollar is the Official Currency US Territory or Foreign Country Relationship with United States Geographic Location Population (2020) Gross Domestic Product (2020) . But as the world has seen recently, even the Saudi kingdom is hedging towards a new global system, and has publicly stated that their ties to the U.S. are open for re-negotiation. Argentina, Hungary, Ukraine, Iceland, Venezuela, Zimbabwe and Germany have all experienced terrible currency crises since 1900. Dollar fast losing dominance as global reserve currency as rupee, yuan rise, De-dollarisation: Bangladesh dumps US currency, becomes 19th country to trade with India in rupees, Brazil 'parroting Russian and Chinese propaganda' on Ukraine, says White House, Argentina dumps US dollar for Chinese yuan: How nations are jumping on the de-dollarisation bandwagon. The commodities-to-equities ratio recently hit a 50-year low. [51], In March 2020, the first Iran-EU INSTEX transaction was concluded. The greenback has been facing competition for long. In turn, US dollar exchange rates can be influenced by several factors, including diverging economic paths between the United States and other economies, differences in monetary and fiscal policies, as well as foreign exchange sales and purchases by central banks. Follow us on Facebook, Twitter and Instagram. Moreover, it doesnt seem to be a longterm viable option. It doesnt need to be backed by gold or silver. [72], On March 30, 2023, Deputy Chairman of the State Duma Alexander Babakov on the sidelines of the Russian-Indian Business Forum in New Delhi stated that the BRICS countries can create a new currency that will be backed not by gold but by real resources, including land and rare earth metals. If China dumped all of its holdings at once, America would likely enter a new financial crisis. China and Russia are leading the pack in the de-dollarisation drive. The group of five economically-aligned countries collectively known as BRICS is reportedly on the cusp of a massive expansion. ", "The rise and fall of the dollar (or when did the dollar replace sterling as the leading reserve currency? [6] Between 1965 and 1981, the U.S. dollar lost two thirds of its value. On March 30, China and Brazil (the worlds most populous and sixth-most populous countries) announced they had come to an agreement to trade with each other in their local currencies, yuan and reais. [20], In September 2022, Gazprom CEO Alexey Miller said that they have signed an agreement to make trade payments in rubles and yuan instead of US dollars. Countries Moving Away From Dealings With The US Dollar. [77][78], In 2022, Zimbabwe introduced a new form of currency made by gold, the Mosi-oa-Tunya, to reduce inflation since the local currency had considerably weakened. 162 70 comments Add a Comment It shows that the share of US dollar assets in central bank reserves dropped by 12 percentage pointsfrom 71 to 59 percentsince the euro was launched in 1999 (top panel), although with notable fluctuations in between (blue line). According to the news website ASEAN Briefing, at the top of their agenda were discussions to reduce dependence on the US Dollar, Euro, Yen, and British Pound from financial transactions and move to settlements in local currencies. The joint statement of Kazakhstan government and national bank stated that their intent is to strengthen their national currency rather than focus on eliminating US dollars. Nuke the United States. Of the total 7.4 trillion held by foreign countries, Japan and Mainland China held the greatest portions, with China holding 859.4 billion U.S. dollars in U.S. securities. // interesting times ahead.. The de-dollarisation process moving away from trading in the dollar and instead choosing local currency has received a boost after the Russia-Ukraine war and as Washingtons tensions with Beijing rise even further. However, there have been significant fluctuations in the interim, which can explain about 80 percent of the short-term (quarterly) variance in the US dollars share of global reserves since 1999. The acronym BRICS stands for the countries of Brazil, Russia, India, China and South Africa. [44], In March 2013, during the BRICS summit, Brazil made an agreement with China to trade in Brazilian real and Chinese yuan[45] The same year, Australia made an agreement with China to trade in national currencies. A total of 24 nations are now looking to build a strategic alliance that will challenge the US dollars decades-long role as the worlds reserve currency. It noted that China is Brazils biggest trading partner, and in 2022 the two countries did more than $150.5 billion worth of trade. The Russian leader added, We support using Chinese yuan in transactions between the Russian Federation and its partners in Asia, Africa and Latin America. "According to the RUMOR, Operation Sandman will "put the US Dollar to sleep" by having all 142 countries repudiate the currency on the same day, and refuse to continue accepting it for payment in Trade. John McCormick you are truly an idiot. It is followed by the Euro as well as the British Pound which are also used globally. (file pic) pic.twitter.com/7J9KYipvmB, People's Daily, China (@PDChina) March 29, 2023. According to the World Gold Council, mined gold production is expected to increase in 2023 and could surpass the record set in 2018 (3,300 tonnes), led by the expansion of existing projects in North America. [37] The Russian Finance Ministry and Central Bank of Russia stated that it would sell around 54.5 billion rubles in foreign currency from January 2023. She condemned US sanctions and dollar hegemony and called for Latin America to break with the Monroe Doctrine. A Bloomberg report dated on 26 April stated that Chinas slow move away from the dollar had reached a milestone. The report quoted the chairman of the Shanghai Petroleum and Natural Gas Exchange, Guo Xu, who said the deal encouraged multi-currency pricing, settlement and cross-border payment. The US dollar has risen by almost 15% against some of the world's most traded currencies this year. Once the supply has adequately grown to meet demand, the cycle enters a downswing. China And Brazil Ditch US Dollar In Trade Deal Before BRICS Summit", "Beijing creates its own global financial architecture as a tool for strategic rivalry", "European powers launch mechanism for trade with Iran", "INSTEX, A New Channel To Bypass U.S. Sanctions And Trade With Iran", "Europe Circumvents U.S. Sanctions On Iran", ": INSTEX ", "INSTEX successfully concludes first transaction", "European countries to send medical aid to Iran in first INSTEX transaction", "Europe dissolves Iran trade system that never took off", "An Indian rupee-ruble trade arrangement with Russia may be ready in a week", "Russia And Iran Experiment With Stripping Dollars From Their Bilateral Trade", "Iran, Russia take major step for de-dollarizing mutual trade", "UPDATE 1-Iran-Russia trade in domestic currencies -Iran envoy", "Explained: How the Indian rupee is going global and drawing interest from more nations - Times of India", "Russia and Iran are working on a gold-backed cryptocurrency to take on the dominant dollar, report says", "Russia And Iran Eye Up Trade Using Cryptocurrencies To Avoid Dollars And Sanctions", "Brazil and Argentina to discuss common currency", "Argentina and Brazil propose a bizarre common currency", "Brazil and Argentina to start preparations for a common currency", "Drubbing the Dollar: China and Brazil ditch dollar, strike deal to settle trade in yuan, real", "Russia to cut share of U.S. dollar in National Wealth Fund, mulls other currencies", " . Far leftist. Most people just want to make a living and take care of their families in all countries! Too many leftist idealist that really have a failed clue on just about everything OMG! Most crime is from foreigners who came in illegally.. E.g. The core collective consists of Brazil, Russia, India, China . 3 reasons not to worry", "US dollars no longer a quote currency in Venezuela", "Fintech is the new oil in the Middle East and North Africa", " | | ", "Egypt Turns to the Chinese Currency With Yuan-Denominated Bonds | Egyptian Streets", "Egypt seeks to issue $500M in Chinese bonds, $1.5-$2B in sovereign sukuks", "Myanmar to Lower Dollar Reliance in Favor of Ruble, Rupee, Yuan", "Myanmar discussing with Russia use of Mir card for payments", "Government Favours Bolstering Tenge over De-Dollarisation, Says National Bank Chief", "kazakhstan holds rates after inflation surges to 6-year high", "Kazakhstan Hold Rates After Inflation Risks 'Strengthened', "Russia Cuts Dollar Holdings From $119 Billion Wealth Fund Amid Sanctions", "Exclusive: Russia likely to buy yuan on FX market in 2023 - sources", "With a sale of Chinese yuan, Russia kicks off 2023 forex intervention", "Amid Western Sanctions, India Explores Rupee-Ruble Mechanism for Trade with Russia", "India explores 'rupee-rouble' exchange scheme to beat Russia sanctions", " 50%", "China and Russia ditch dollar in move toward 'financial alliance', "China, Japan to trade in own currencies", "So Long, Yankees!
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