The list of the 23 countries which are creating new swap lines outside of the dollar include China, Russia, India, and surprisingly, Germany, France, and the United Kingdom. Ditching the Dollar: Will a new BRICS currency replace the US dollar this is the result liberals goodie two shoes. The f did I just watch? . 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. [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. India has been slowly moving away from the dollar. The U.S. dollar has been the world's major reserve currency for decades, but that status could come under threat as "very . The Central Bank of Iraq (CBI) is purchasing large amounts of gold to back the Iraqi dinar currency. Moving away from an established currency like dollar will impact a countrys networking effect and create substantial barriers. 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. [59], In January 2023, Russia and Iran were planning to trade with gold backed cryptocurrencies as an alternative to US dollar. And with 23 countries, including those from the BRICs nations and the Eurozone, preparing for new swap lines outside of dollar hegemony, the fuse has been lit on the dollar's death rattle, and the when has changed into the now. And I LOVE your reference to StarTreks workd of 0 currencies/money in favour of all resources focused on allowing people to go as far as they can in an area they love and are good at! Blockchain Regulators We should work together. As of April 25, gold prices were hovering around the $2,000 per ounce mark and nearing all-time highs. No offense but I have to call you in idiot because I called them as I see them. What It Would Take for the U.S. Dollar to Collapse - Investopedia Ripple and XRP Altcoins 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. This will eliminate black budgets and quickly expose any corruption to the currency and public spending. 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. RT discussed with analysts how realistic the prospect of countries ditching the dollar is. Will it be the yen, the euro or even the rupee? Which countries are dumping the dollar and why? - RT [73], After a year of the RTGS Dollar having been the only legal tender,[74] Zimbabwe adopted dollarization due to hyperinflation. destruction of the current system has to come first, Mick. During periods of US dollar weakness against major currencies, the US dollars share of global reserves generally declines since the US dollar value of reserves denominated in other currencies increases (and vice versa in times of US dollar strength). 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] Currently, no single currency fully meets these criteria, although the euro and the Chinese yuan have made strides in this regard. [11][12], In December 2022 at China - GCC Summit, President Xi Jinping called for Oil trade payments to be settled at yuan. Follow us on Facebook, Twitter and Instagram. Global gold production has grown exponentially since the 1800s, with 86% of all above-ground gold mined in the last 200 years. 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. 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. 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. )", "How a 1944 Agreement Created a New International Monetary System", "Sanctions Programs and Country Information | U.S. Department of the Treasury", "Controlling Inflation: A Historical Perspective", "Measuring Worth Purchasing Power of Money in the United States from 1774 to 2010", The Stealth Erosion of Dollar Dominance:Active Diversifiers and the Rise of Nontraditional Reserve Currencies, "China Prepares Death Blow To The Dollar", "Beijing-Riyadh cooperation advances de-dollarization process", "WSJ News Exclusive | Saudi Arabia Considers Accepting Yuan Instead of Dollars for Chinese Oil Sales", "China's Xi calls for oil trade in yuan at Gulf summit in Riyadh", "China's attempt to challenge the USD's dominance as Xi Jinping calls for oil trade in yuan", "China defends Ukraine war stance, aims to deepen ties with Russia", "Four European Gas Buyers Made Ruble Payments to Russia", "Four European gas buyers made rouble payments to Russia -Bloomberg News", "Ghana plans to buy oil with gold instead of U.S. dollars", "Ghana plans to buy oil with gold instead of dollars", "Putin and Erdogan agree to boost cooperation, some rouble payments for gas", "Gazprom says it has signed deal for China to pay for Russian gas in national currencies", "Value of Russia-China energy trade up 64%, deputy PM says", "Explained: Putin's demand for trade in rubles, and how it could work", "Saudi Arabia Open to Talks on Trade in Currencies Besides Dollar", "Saudi Arabia just said they are now 'open' to the idea of trading in currencies besides the US dollar does this spell doom for the greenback? [38], Before 1991, Soviet Union and India traded in rupee-ruble exchange during Cold War. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ); The EU sanctioned Russia and boycotted its oil, yet is still buying it indirectly from India, at a higher price. In addition, many countries and territories peg the value of their own local currency to that of the US dollar, exchanging it either 1:1 or at a different, but fixed exchange rate. A large and sudden jump in real interest rates could lead to a further selloff in stocks. Rising government spending in the 1960s, however, led to doubts about the ability of the United States to maintain this convertibility, gold stocks dwindled as banks and international investors began to convert dollars to gold, and as a result, the value of the dollar began to decline. Major foreign holders treasury securities U.S. 2023 | Statista [21], In November 2022, Russian Deputy Prime Minister Alexander Novak confirmed that all gas supplied to China via Siberia are settled in rubles and yuan. 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! The global de-dollarization campaign is gaining momentum, as countries around the world seek alternatives to the hegemony of the US dollar. [54], In March 2022, India and Russia entered for a RupeeRuble Trade Arrangement. Most crime is from foreigners who came in illegally.. E.g. 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 Because Russia was able to neuter sanctions, the Deep State had to resort to sabotage of the Nordstream 2 pipeline. 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. Buy Book. Why did you try sneaking into any country and see how that works out for you ! History is full of sudden currency collapses. It's happening: Brazil and Argentina are making plans for a Latin American currency, to boost regional trade and reduce reliance on the US dollar, the Financial Times reported, Lula (a co-founder of the BRICS) had pledged this while running for presidenthttps://t.co/IAiwfeLz2z, Ben Norton (@BenjaminNorton) January 22, 2023. 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. All those dollars in foreign accounts will come home, which will annihilate our monetary system. Thats all very well but take away the border control and now the crime rate is the worst in the world. In contrast, during the first half of the 2000s, low oil prices were accompanied by a strong equity bull market that ended with the 2008 stock market crash. Prepare for a multipolar currency world https://t.co/gCoN2YjEEY, FT World News (@ftworldnews) March 30, 2023. If you still dont understand de-dollarisation, an influencer on TikTok has explained it, using the famous movie Mean Girls as a reference. and if big brother is dismantled and the same policy is installed people will still come and build the country back with in one decade. Save my name, email, and website in this browser for the next time I comment. These countries include Russia, China, India, and even Germany, France, and the United Kingdom. The last commodity supercycle started in 1996 and peaked in 2011, driven by raw material demand from rapid industrialization taking place in Brazil, India, Russia, and China. [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. This is because Kenyas dollar reserves are running low. Reuters reported that Russias largest oil producer, the state-owned company Rosneft, made an deal with Indias top refiner Indian Oil Corp, which is also state owned, to use the Dubai price benchmark in oil sales, as opposed to the Brent benchmark. 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. Top 5 countries opting to ditch US dollar & the reasons behind their Read all the Latest News, Trending News, Cricket News, Bollywood News, pic.twitter.com/JOLblXhhzQ, New Development Bank (@NDB_int) March 28, 2023. He said policymakers must be vigilant and take appropriate measures to safeguard financial stability. Economic statecraft is a roundabout way of saying economic warfare. In fact, in 2011, Japan and China agreed to dump the dollar and trade with their respective currencies. Indonesian President Joko Widodo has urged regional administrations to start using credit cards issued by local banks and gradually stop using foreign payment systems. [28][29][30] In September 2022, Chairman of State Administration Council Min Aung Hlaing stated that they are planning to reduce US dollar reliance and to include trade in other Foreign currencies. 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. Once the supply has adequately grown to meet demand, the cycle enters a downswing. you travel to US you bring your money to buy home and start your business -shop workshop or whatever. 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. Before we delve into de-dollarisation, one has to understand how the dollar became the acknowledged currency for international trade. Image used for representational purposes/Freepik. The core collective consists of Brazil, Russia, India, China . US Dollar Share of Global Foreign Exchange Reserves Drops to 25-Year Low The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board. Turning to this past year, once we account for the impact of exchange rate movements (orange line), we see that the US dollars share in reserves held broadly steady. 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 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. Brazils leftist President Lula da Silva has called for Latin America to develop a new currency for regional trade, which he calls the Sur. 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. A few countries, such as Russia, have already announced their intention to do so. 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! Exactly you dont know because you fail to understand once one nuke is launched the rest of the world would follow suit and in the end 6-7 billion people are dead, and the ones who survive will likely die from radiation poisoning, and starvation. In 1944, the Bretton Woods Agreement established the dollar as the worlds reserve currency. 100+ nations have global agreement now being deployed called 'Project Most of commentory ignored that it is not the US Dollar they want to drop but also other Major Currency considered to be Strong & Safe, Your email address will not be published. The best thing that can and should be done to the U.S. is to vaporize it with thermo-nuclear devices!!! Secondly, to replace the dollar with another currency, it needs to have a certain degree of stability, liquidity, and acceptability. Why did you try sneaking into Canada and see how that works out for you? 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. When is also the question that I get asked about quite often by thousands of people. [60][61] Also, the same month, Argentina and Brazil proposed a common currency for trade which is termed as 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. China and Russia in recent times have pushed more aggressively to unseat the dollar. "Project Sandman" describes a 100+ nation agreement that - Reddit IT WAS NOT EASY DOING ALL THE RESEARCH TO GET THE GLOBAL MO IES FOR PEACE WHICH WERE IGNORED BY POTUS CLINTON/BUSH/OBAMA/BUSH JR AND TRUMP /PELOSI/ KENNEDYS AND EVEYONE IN THE WORLD AND US GOVERNMENT WHICH WOULD HACE STOPPED THE LATEST CHINA GLOBAL MONETARY ATTACK IN DISGUSE OF A PANDEMIC- MURDER IN DISGUISE AS THE ROCK-N-ROLL PROPHET LEMMY KILMISTER OF MOTORHEAD FORETOLD IN HIS SONG: LOVE ME LIKE A REPTILE !! Even US ally India is hedging its bets on de-dollarization. Youll notice that the U.S. sanctions against Russia was ineffective. These countries are quickly and quietly dumping the dollar After World War II, the US dollar replaced the British pound as the dominating currency worldwide. This is it really important at all The important factThis pronouns! bitcoin under the same asset class as gold ,, a commodity but crypto is also a monetary and currency system. Countries that Use the US Dollar 2023 - worldpopulationreview.com [51], In March 2020, the first Iran-EU INSTEX transaction was concluded. [52][53] european countries said on march 2023 they had decided to end a scheme put in place in 2019 to allow trade with Iran and protect companies doing business with it from US sanctions, but it was only a single one transaction traded. The United States became, almost overnight, the leading financial power after World War I. Emerging economies with big dollar-denominated debt balances have been hit particularly hard by the strengthening . Get a grip you are an idiot. 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. 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. But even as countries move away from the dollar, the US currency isnt going away any time soon. 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. Have also cross-posted all of this material on Twitter under @nyinvesting. [3], After the establishment of the Bretton Woods system, the US dollar is used as the medium for international trade. The de-dollarisation drive continues: Which nations are dumping the US 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. Kenya asked to do so because the African nations dollar reserves are running low, as it pays for more expensive imports. French media outlet RFI described the trade as a major step in Beijings attempts to undermine the US dollar as universal petrodollar for gas and oil trade. [39] Mutual trading between India and Russia is done mostly in rubles and rupees instead of dollars and euros. Other foreign holders. There was no legal process there was no nothing. i think one day we will evolve to the point where value will not be money but something else.. Explained: What Is Dedollarisation & Why Are Countries Dumping - MSN 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. Just a week after Xis trip to Moscow, China announced that it had for the first time used yuan to buy liquefied natural gas (LNG) from the UAE. 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. 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. Is there any hope for us at all? [75][76] In an interview with former Finance Minister Tendai Biti, he pointed out that dedollarisation has failed dismally. CBDCs running on one public blockchain are needed. The remaining 20 percent of the short-term variance can be explained mainly by active buying and selling decisions of central banks to support their own currencies. Countries with their own versions of the dollar Speaking during his visit to China, the veteran leader said, Why should every country have to be tied to the dollar for trade? This means that contracts for commodities like crude oil and natural gas are almost always priced in dollars. Thats according to South Africas BRICS ambassador, Anil Sooklal, who tells Bloomberg that a long list of nations are now looking to join in. 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. [69] Lukoil, a state-owned company, had announced that it will find a replacement for the dollar. Foreign Countries that Use the US Dollar (2020) | Airfarewatchdog Blog Argentina, Hungary, Ukraine, Iceland, Venezuela, Zimbabwe and Germany have all experienced terrible currency crises since 1900. 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. The footprint of the U.S. will be reduced around the world but at home the U.S. will roar economically because there wont be any other choice. Industry Announcements, ABOUT US | EDITORIAL POLICY | PRIVACY POLICY 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. [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. It is followed by the Euro as well as the British Pound which are also used globally. Japan, Turkey, Venezuela, and Iran have all made moves away from the dollar, including dumping their holdings of US debt and increasing their respective gold reserves. to U is, What about all the NUCLEAR FALLOUT that comes with all of the Vaporization that occurs!!! Most people just want to make a living and take care of their families in all countries! Reliable source this story is .when there no author to a story its bs . The king of currency, the dollar, is on shaky ground. The group of five economically-aligned countries collectively known as BRICS is reportedly on the cusp of a massive expansion. The finance ministers and governors of the central banks of the member states of the Association of Southeast Asian Nations (ASEAN) met in Indonesia on March 28. A CDBC will also better track proceed of crime which is problematic with paper currency. Plus the fact that the fellow who first presented it still owns a huge %age of Bitcoin is a major fault. 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. The BRICS collective, comprising Brazil, Russia, India, China and South Africa, is working on a common currency in an attempt to ditch the US dollar and push back against America's dominance. A Bloomberg report quoted Malaysias prime minister Anwar Ibrahim as saying, There is no reason for Malaysia to continue depending on the dollar.. The new monetary system could mean the debts can be settled in their own countries and could reduce the demand for US dollars by 3 billion a year. The new financial agreement could be seen as soon as in August when the countries meet for their annual summit in South Africa. It noted that China is Brazils biggest trading partner, and in 2022 the two countries did more than $150.5 billion worth of trade. 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. A week after Xi Jinping visited Russia, China announced that it used yuan to buy liquefied natural gas (LNG) from the UAE. [71] On March 31, 2022, the Economic Times published information that India has offered Russia a new transaction system with the transfer of trade to the ruble and SPFS, which will work through the Reserve Bank of India and Russia's Vnesheconombank.
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