A large and sudden jump in real interest rates could lead to a further selloff in stocks. Many nations are now seeking financial alternatives, afraid that they could be the next target. 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. The International Monetary Fund (IMF) has stated that Iraq has added 36 tons of gold bullion to its reserves. 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 New Global Currency Designed to Ditch US Dollar Coming From BRICS A wheel barrow of money for a loaf of breadsame thing happened in Germany after ww2 . . A number of additional nations, including Saudi Arabia, Argentina, Iran, Indonesia, Turkey and Egypt, have reportedly expressed interest in joining the alliance. President Nixon ceased the direct convertibility of U.S. dollars to gold in 1971. Beijing and Brazil have also dropped the dollar in bilateral trade. Most crime is from foreigners who came in illegally.. E.g. But even as countries move away from the dollar, the US currency isnt going away any time soon. Yes Mr. McCormick *cues evil laugh* Mwhahahahahaha! 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the US Dollar they want to drop but also other Major Currency considered to be Strong & Safe, Your email address will not be published. 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. Facing an emerging currency crisis and the imminent danger that the United States would no longer be able to redeem dollars for gold, gold convertibility was finally terminated in 1971 by President Nixon, resulting in the "Nixon shock". 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. Cryptocurrencies will be eliminated or made defunct because all but one are illegal securities and all of them are redundant and none of them can scale to the level where they can be used worldwide. Youll notice that the U.S. sanctions against Russia was ineffective. [38], Before 1991, Soviet Union and India traded in rupee-ruble exchange during Cold War. China has by far the world's largest reserve holdings. Far leftist. 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. 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). This will force The Federal Reserve to print even more dollars than the $85 billion it's currently printing. The UAE is selling China its gas in yuan, through a French company. 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. 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). ASEAN is developing a cross-border digital payment system that would allow the use of local currencies in regional trade. 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. That day has finally arrived as on Nov. 18, a former head trader for a major financial institution issued a harbinger and stated that 23 countries, and 60% of the world's GDP, are right now setting up new swap lines which bypass the dollar, SWIFT, and the BIS, and will usher in a new global currency system which will kill the dollar. There's strong motivation to 'de-dollarize,' says expert. 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. . Countries in Southeast Asia are also de-dollarising. 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 DEFRAUDNG OF ECONOMIC GLOBAL MONETARY MARKETS IN DISGUISE OF TERROR IN 1991? Have also cross-posted all of this material on Twitter under @nyinvesting. The views expressed are those of the author(s) and do not necessarily represent the views of the IMF and its Executive Board. It is important that our national currencies are increasingly used in bilateral trade, Putin said. 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. There is no reason for Malaysia to continue depending on the dollar, Anwar said, in comments reported by Bloomberg. Exchange rate fluctuations can have a major impact on the currency composition of central bank reserve portfolios. Kenya asked to do so because the African nations dollar reserves are running low, as it pays for more expensive imports. Ranked: The U.S. Banks With the Most Uninsured Deposits, Charted: 30 Years of Central Bank Gold Demand, Charted: Commodities vs Equity Valuations (19702023), 200 Years of Global Gold Production, by Country, Visualizing Global EV Production in 2022, by Brand, Silver vs. Stocks: Comparing Performance During Recessions. Although it has remained the international reserve currency, the U.S. dollar has increasingly lost its purchasing power since then. "The decision by the two state-controlled companies to abandon the Europe-dominated Brent benchmark is part of a shift of Russia's oil sales towards Asia"https://t.co/dpYheR1mHQ, Ben Norton (@BenjaminNorton) April 4, 2023. Think! 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! PS. We should continue promoting settlements in national currencies, and expand the reciprocal presence of financial and banking structures in our countries markets. The thoughts that are put into the minds of men that are aware of what is occurring on trading floors all over the world is when? China and Russia are trading in their own currencies. "Project Sandman" describes a 100+ nation agreement that, when triggered, will see those nations simultaneously dump the dollar and abandon the "petrodollar" .. Also, China just announced that it will stop purchasing our debt (holding dollars in reserve). Foreign Countries that Use the US Dollar (2020) | Airfarewatchdog Blog A CBDC properly backed by this public blockchain can provide the underlying value. Bravo! After World War II, the US dollar replaced the British pound as the dominating currency worldwide. Nuke the United States. Almost every establishment will take USD, but smaller and newer notes are preferred. Could The U.S. Dollar Collapse? - Forbes [75][76] In an interview with former Finance Minister Tendai Biti, he pointed out that dedollarisation has failed dismally. The South American country announced that it would pay for Chinese imports in yuan rather than dollars, in a measure to save the countrys dwindling dollar reserves. Is there any hope for us at all? [62][63][64] The same month, Brazil and China entered into a preliminary agreement to trade in national currencies instead of US dollar. The upcoming BRICS summit is set for August 22nd in South Africa. The f did I just watch? )", "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? The new financial agreement could be seen as soon as in August when the countries meet for their annual summit in South Africa. [36], Russia had been planning to buy more yuan in the foreign exchange market in 2023 for trade settlements. [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. TERMS AND CONDITIONS | CONTACT | ADVERTISE, Authenticator Alert Securing Your Crypto. 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. 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. [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. 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 . Chinas President Xi Jinping traveled to Russia, where he pledged changes we havent seen for 100 years. Image used for representational purposes/Freepik. In recent years, commodity prices have reached a 50-year low relative to overall equity markets (S&P 500). 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. Read all the Latest News, Trending News, Cricket News, Bollywood News, Additional details are likely to emerge by the summer, with the next BRICS summit set for South Africa in late August. The media outlet added that Indonesias central bank plans on creating a local payment system as well. John McCormick you are truly an idiot. The U.S. Dollar may or may not lose some value to the rest of the world currencies but it will still remain in high demand as the U.S. is an autarky and can be 100% self-sufficient. You should read the book by Brad Rigden, Bad Money. [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. [6], The value of the U.S. dollar was therefore no longer anchored to gold, and it fell upon the Federal Reserve to maintain the value of the U.S. currency. This will eliminate black budgets and quickly expose any corruption to the currency and public spending. 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.