This is a frontal challenge to the US-dominated International Monetary Fund (IMF), which emerged from the 1944 Bretton Woods Conference that established the dollar as the global reserve currency. 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. The dollar collapse is a deliberate plan to force the starving masses into a digital dollar control grid. Kenya to start buying petroleum products with Kenyan shillings https://t.co/Q6HEcB4I6r, Peoples Gazette (@GazetteNGR) March 27, 2023. They believe that the dollar has long given Washington a disproportionate amount of influence over other economies and they would like to put a stop to it. See: Two Weeks that Shook the Dollar (posted multiple times and in at least a dozen LinkedIn groups). Other countries too are dumping the dollar now. Iran, which is sanctioned by the US, is also carrying out trade with Russia and China in the local currency. I love the one where people say America was built on immigration! The king of currency, the dollar, is on shaky ground. Countries worldwide are dropping the US dollar: De-dollarization in China, Russia, Brazil, ASEAN The global de-dollarization campaign is gaining momentum, as countries around the world seek alternatives to the hegemony of the US dollar. [41][42] In 2011, Japan made an agreement with China to trade in national currencies. Once the supply has adequately grown to meet demand, the cycle enters a downswing. Dedollarisation refers to countries reducing reliance on the U.S. dollar as a reserve currency, medium of exchange or as a unit of account. Meantime, in the US, theres volatility in Banks, The Fed, and many financiers are in turmoil over high interest rates, the collapsing real estate markets, with trillions of $$ removed from stressful banks, and seeking for safe places, ie. Most crime is from foreigners who came in illegally.. E.g. Both agreed to deepen economic integration and challenge the hegemony of the US dollar, using yuan and other currencies in international tradehttps://t.co/uTPkDIrfVb, Ben Norton (@BenjaminNorton) March 26, 2023. The dollar then gained a greater role in 1944, when 44 countries signed the Bretton Woods Agreement, creating a collective international currency exchange regime pegged to the U.S. dollar which was, in turn, pegged to the price of gold. Exchange rate fluctuations could impact trade, investment, and capital flows, particularly for countries with less developed financial markets or limited policy tools to manage exchange rate volatility. BRICS was formed back in 2006, and the original group did not include South Africa, which joined in 2010. But what is important is the distributed ledger that will enable CBDCs to be audited by the public. 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. Before we delve into de-dollarisation, one has to understand how the dollar became the acknowledged currency for international trade. Drugs from Nigeria . The original Bretton Woods Agreement is dead, but the dollar remains the international reserve currency. .More Countries Repatriating their Gold and Ditching The Dollar Survival Economist: 3-6-2022 Hungary's Gold Repatriation Adds To Growing Protest Against US Dollar Hegemony. Countries in Southeast Asia are also de-dollarising. Also, the most pertinent question that remain in the de-dollarisation debate is which currency replaces the US dollar. Or depending the period of time, you could also come in invited by the Mexican border into Texas so that later you could ignore the conditions and just uprising to declare independence. 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. Other countries too are dumping the dollar now. End of story. If you still dont understand de-dollarisation, an influencer on TikTok has explained it, using the famous movie Mean Girls as a reference. Industry Announcements, ABOUT US | EDITORIAL POLICY | PRIVACY POLICY China . 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. The only thing that stands in the way of the world's final rejection of the dollar is the wavering trust that Saudi Arabia and OPEC have with the U.S. in assuring oil transactions remain denominated in dollars under the 1970's Petrodollar agreement. In fact, in 2011, Japan and China agreed to dump the dollar and trade with their respective currencies. Read More, Currency Composition of Official Foreign Exchange Reserves, Low Real Interest Rates Support Asset Prices, But Risks Are Rising, From the History Books: The Rethinking of the International Monetary System, Dominant Currencies and the Limits of Exchange Rate Flexibility. 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 . The core collective consists of Brazil, Russia, India, China and South Africa and a surge of nations interested in joining the alliance would bring the total number of nations to 24. AMERICAFIRSTBILL.COM- AMERICA FIRST PROJECT- THE REAL 911-AMAZONBOOKS.COM- BY FERNANDO FONTANEZ- TELLS THE REAL 911 STORY OF CHINA ATTACKING THEGLOBALMARKETS EC ONOM IC BLEEDING SINCE 1991 WITH MEDIA SLICK ACTIVITY COVERING UP THE NIXON/KISSINGER -SAUDI DEAL MONIES OF THE SEVENTIES IN FULL OPEARTIONAL INTEGRATION! A CBDC properly backed by this public blockchain can provide the underlying value. According to the Russian state-owned news agency Sputnik, BRICS is in the early stages of developing a new global currency that would circumvent the US dollar. There is no reason for Malaysia to continue depending on the dollar, Anwar said, in comments reported by Bloomberg. Concerned about Americas dominance over the global financial system and the countrys ability to weaponize it, other nations have been testing alternatives to reduce the dollars hegemony. As the recent International Monetary Fund report stated that the dollar still plays an outsized role in global markets despite the US economy representing a shrinking share of global output over the last two decades. 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. yes so crypto currencies may come into play,, especially the block chain,,, which will bring transparency to financial services,, they just need to become safe ,where they cannot be stolen.. and also transactions need to be transparent.. no black market , or corporate crime Moving away from an established currency like dollar will impact a countrys networking effect and create substantial barriers. 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). But its not just Russia and China that are steering clear of the dollar. Even the Financial Times newspaper has acknowledged that a multipolar currency world is emerging. This means that contracts for commodities like crude oil and natural gas are almost always priced in dollars. 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. As the United States and other Western nations imposed economic sanctions against Russia in response to its invasion of Ukraine, Moscow and the Chinese government have been teaming up to reduce reliance on the dollar and to establish cooperation between their financial systems. These countries include Russia, China, India, and even Germany, France, and the United Kingdom. 23 countries and they named how many .hmm. For mining companies, higher gold prices can mean more profits per ounce if costs remain unaffected. The NDB, commonly known as the BRICS Bank, was created by the bloc of Brazil, Russia, India, China, and South Africa as an alternative to the US-dominated World Bank. The group of five economically-aligned countries collectively known as BRICS is reportedly on the cusp of a massive expansion. China is open to talks with Malaysia on forming an Asian Monetary Fund, said Prime Minister Anwar Ibrahim, amid the worlds growing impatience with the King Dollars dominance https://t.co/oXnuqomt9n. As an increasing number of countries move away from the dollar, lets take a better look at what exactly is de-dollarisation, which countries are practising it and is it a viable strategy. Another Southeast Asian nation, Malaysia, is publicly advocating de-dollarization. like star treck where humans work for the betterment of science and evolution, nature etc. This scenario has been engineered for a deliberate collapse of the dollar fiat currency and an attempted forcing of everyone into a digital dollar system run by the banksters. This graphic catalogs the rise of the U.S. dollar as the dominant international reserve currency, and the recent efforts by various nations to de-dollarize and reduce their dependence on the U.S. financial system. Economic statecraft is a roundabout way of saying economic warfare. In this past one year, theres a growing trend of countries sidestepping the US dollar and choosing to use their own local currencies for bilateral trade. 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. Brazils leftist President Lula da Silva has called for Latin America to develop a new currency for regional trade, which he calls the Sur. [10], In March 2022, multiple reports claimed that Saudi Arabia was in talks with China about trading Saudi oil and gas to China in Chinese yuan instead of dollars. 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. The above infographic uses data from Our World in Data to visualize global gold production by country from 1820 to 2022, showing how gold mining has evolved to become increasingly global over time. 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. 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. Historically, lows in the ratio of commodities to equities have corresponded with the beginning of new commodity supercycles. China has by far the world's largest reserve holdings. The country entered the war only in 1917 and emerged far stronger than its European counterparts. 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. This is it really important at all The important factThis pronouns! Kenya has signed an agreement with Saudi Arabia and the UAE to buy oil in March, using the shilling the countrys local currency. Cryptocurrency news and analysis, covering Bitcoin, Ethereum, Ripple, XRP, altcoins and blockchain technology, Bitcoin Ethereum Trading He argued that Indonesia needed to shield itself from geopolitical disruptions, citing the sanctions targeting Russias financial sector from the US, EU, and their allies over the conflict in Ukraine. Schectman, who has three decades of experience in the precious metals sector, said that the BRICS (Brazil, Russia, India, China, and South Africa) coalition could lead the charge to develop their own reserve currency which would compete against the U.S. dollar. This long-term decline is the result of mine closures, maturing assets, and industrial conflict, according to the World Gold Council. What will occur is that the U.S. economy will be revitalized from within. Because Russia was able to neuter sanctions, the Deep State had to resort to sabotage of the Nordstream 2 pipeline. Please help update this article to reflect recent events or newly available information. China, the emerging and competing empire, has already started the process of dumping the American dollar in a careful and coordinated fashion. By 2007, China was the worlds largest gold-producing nation, and today a significant quantity of gold is being mined in over 40 countries. This means that the Eurozone itself is abandoning the dollar, and preparing for transition to a new central banking system. It will neutralize U.S. sanctions and will prevent the disruption to trade. Interestingly, Brazil and China trade in the yuan and it was just reported that the yuan had surpassed the euro to become Brazils second-largest international reserve currency after the US dollar. The United States Department of the Treasury exercises considerable oversight over the SWIFT financial transfers network,[4] and consequently has a huge sway on the global financial transactions systems, with the ability to impose sanctions on foreign entities and individuals. [40], It made agreements with Australia, Russia, Japan, Brazil, and Iran to trade in national currencies. For several years, financial analysts, primarily those outside the mainstream of academia, have been warning that any day could be the black swan event that collapses the dollar, and ends U.S. hegemony as caretaker of the world's 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 Central Bank of Iraq (CBI) is purchasing large amounts of gold to back the Iraqi dinar currency. The new financial agreement could be seen as soon as in August when the countries meet for their annual summit in South Africa. PS. Hording precious metal inflates their prices and produces shortages and waste where these metal should only be applied for industrial use. President Nixon ceased the direct convertibility of U.S. dollars to gold in 1971. [7], According to the IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) survey the share of reserves held in U.S. dollars by central banks fell from 71 percent in 1999 to 59 percent in 2021. 162 70 comments Add a Comment 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. The group of known newcomers includes Saudi Arabia, Iran, Argentina, the United Arab Emirates, Algeria, Egypt, Bahrain, Indonesia, two unnamed nations from East Africa and one from West Africa. [32], In December 2015, the Kazakhstan government and national bank announced plans to reduce dollar dependency and strengthen the national currency. 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. So what is the when? [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. [69] Lukoil, a state-owned company, had announced that it will find a replacement for the dollar. 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. None of these cryptos for the exception of one, can facilitate micropayments or perform peer-to-peer payments. The American Institute of Economic Research said this strategy is not foolproof. Most people just want to make a living and take care of their families in all countries! The Federal Reserve, however, continued to increase the money supply, resulting in stagflation and a rapidly declining value of the U.S. dollar in the 1970s. Since China is by far the largest holder of US dollar reserves, this looks like the beginning of the end of the US dollar as the world's reserve currency. A wheel barrow of money for a loaf of breadsame thing happened in Germany after ww2 . The chances of record mine output could be higher if gold prices continue to increase. (Se puede leer esta nota en espaol aqu.). [24][25], In August 2018, Venezuela declared that it would price its oil in euros, yuan, rubles, and other currencies. He said policymakers must be vigilant and take appropriate measures to safeguard financial stability. This, in turn, gives Washington economic powers beyond belief. In 1944, the Bretton Woods Agreement established the dollar as the worlds reserve currency. 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. 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. China, Russia, Brazil, India, ASEAN nations, Kenya, Saudi Arabia, and the UAE are now using local currencies in trade. In line with the above notion, commodity prices and equity valuations have often been at odds with one another in past market cycles. ?/ so u can spend 1 trilion every year for defence?? Barbados. Protect your wealth my friends. 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 ruble and renminbi. The US dollar has risen by almost 15% against some of the world's most traded currencies this year. Firstpost - All Rights Reserved. As these other nations de-dollarize what it will do is remove the power of the Deep State to use the U.S. Dollar as a weapon against the rest of the world. According to the same data, the system will be put into operation within a week. The group of five economically-aligned countries collectively known as BRICS is reportedly on the cusp of a massive expansion. China and Russia in recent times have pushed more aggressively to unseat the dollar. In March, Kenya signed an agreement with state-owned companies in Saudi Arabia and the UAE to buy oil on credit, using the countrys local currency, the shilling. Prime Minister Anwar Ibrahim met with Chinas Xi Jinping on 31 March and its reported that the two discussed plans to create an Asian Monetary Fund and weaken the US dollar hegemony. The media outlet added that Indonesias central bank plans on creating a local payment system as well. Open the border s , let all African people come to SA , as Africa is for all Africans. Our Chart of the Week looks at the recent data release from a longer-term perspective. Bravo! She noted that the former Goldman Sachs economist who first popularized the term BRICS, Jim ONeill, has stated that the dollar plays far too dominant a role in global finance. [59], In January 2023, Russia and Iran were planning to trade with gold backed cryptocurrencies as an alternative to US dollar. Great article! if any person go to other country they should take care of themselves. Although it has remained the international reserve currency, the U.S. dollar has increasingly lost its purchasing power since then. 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] [9], In 2015, China launched CIPS, a payment system which offers clearing and settlement services for its participants in cross-border Renminbi payments and trade as an alternative to SWIFT. Folks the biggest sign is when those that trade in the dollar to acquire goods, no longer want the worthless paper because of US bully policies or they have totally lost faith in the US as a responsible steward of its currency and economy. [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. What happens to the rest of the world? In recent years, commodity prices have reached a 50-year low relative to overall equity markets (S&P 500). Malaysia is also advocating de-dollarisation. I DO agree with you that were in for interesting times ahead. Allowing anyone to come through? NOW it the time to buy! Serkan Arslanalp , Chima Simpson-Bell May 5, 2021 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 IMF's Currency Composition of Official Foreign Exchange Reserves (COFER) survey. Also read: Xi Jinping in Moscow: Will Chinese president convince 'good old friend' Vladimir Putin to end war in Ukraine? Now, de-dollarisation is the process of reducing dependency on the dollar and effectively weakening US global position. The yuan usage in its cross-border transactions had jumped ahead of the dollar for the first time in March. Process of substituting US dollar as the currency for various uses. Ripple and XRP Altcoins It may be replaced by different currency that can be backed by the productivity of her workforce. Russia and China's Steps Towards De-Dollarization Concerned about America's dominance over the global financial system and the country's ability to 'weaponize' it, other nations have been testing alternatives to reduce the dollar's hegemony. The acronym BRICS stands for the countries of Brazil, Russia, India, China and South Africa. The greenback has been facing competition for long. Ranked: The Top 10 EV Battery Manufacturers, Visualizing Chinas Dominance in Rare Earth Metals, All the Worlds Metals and Minerals in One Visualization, All the Metals We Mined in One Visualization, How the Worlds Top Gold Mining Stocks Performed in 2020, Peak of supercycle from long-term trend (%), Trough of supercycle from long-term trend (%), Length of cycle from trough-to-trough (years). [16][17], In 24 November 2022, Vice President Mahamudu Bawumia stated that they are working to buy Oil in Gold and he added "The barter of gold for oil represents a major structural change. It is because of the dominance of the dollar, or greenback as it is called, that Washington has been able to freeze half of Russias foreign currency reserves and also ban it banks from the SWIFT payment system in the aftermath of Vladimir Putins invasion of Ukraine in February 2022. Also see: Why is the movement away from the US dollar taking place now? CBDCs running on one public blockchain are needed. The U.S. dollar has been the world's major reserve currency for decades, but that status could come under threat as "very . A total of 24 nations are now looking to build a strategic alliance that will challenge the US dollar's decades-long role as the world's reserve currency. The SWIFT system a abolished in favour of another better system perhaps the Quantum Financial system is our new world. What am I thinking? [50] On 11 February 2019, Russian deputy foreign minister Sergei Ryabkov stated that Russia would be interested in participating in INSTEX. [13][14] Foreign Minister Wang Yi stated that Chinese-Arab relations experienced a "historic improvement. Save my name, email, and website in this browser for the next time I comment. [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. The f did I just watch? She condemned US sanctions and dollar hegemony and called for Latin America to break with the Monroe Doctrine. As of April 25, gold prices were hovering around the $2,000 per ounce mark and nearing all-time highs. The IMF, based in Washington D.C., is an organization of 190 countries, working to foster global monetary cooperation and financial stability around the world. If paying with US cash, only bills will be accepted, and you'll always receive change in Bds$. China and Russia are leading the pack in the de-dollarisation drive. To facilitate the transfer of currencies and swap lines, there needs to be a bank of sufficient size and stature to aid in handling of this monumental task. China's first yuan-settled liquefied natural gas (LNG) trade was completed on Tuesday through the Shanghai Petroleum and Natural Gas Exchange, with about 65,000 tonnes of LNG imported from the UAE changing hands in the trade. That day has arrived. China's holdings of US sovereign debt dropped to $1.165 trillion in August, from $1.171 trillion in July, marking the third consecutive month of declines as the world's second-largest economy bolsters its national currency amid trade tensions with the US. Kenya is buying Persian Gulf oil with its own currency. India has been slowly moving away from the dollar. When this decision is triggered, the dollar and all dollar-denominated assets will plunge to near-ZERO literally overnight. [38], Before 1991, Soviet Union and India traded in rupee-ruble exchange during Cold War. 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. Secondly, to replace the dollar with another currency, it needs to have a certain degree of stability, liquidity, and acceptability. 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?

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