https://en.sputniknews.africa/20230418/how-brics-can-dethrone-dollar-dominance-expert-sizes-up-multipolar-monetary-system-1058676913.html
How BRICS Can Dethrone Dollar Dominance: Expert Sizes Up Multipolar Monetary System
How BRICS Can Dethrone Dollar Dominance: Expert Sizes Up Multipolar Monetary System
Sputnik Africa
As the dollar loses ground in international settlements, experts foresee various alternatives. The BRICS group could serve as a platform and eclipse the US currency, a Chinese researcher tells Sputnik.
2023-04-18T10:12+0200
2023-04-18T10:12+0200
2023-04-18T10:12+0200
opinion
brics
ditching dollar
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brazil
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united arab emirates
france
lula da silva
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As the dollar loses ground in international settlements, experts foresee various options. Primarily, the fact that BRICS may expand, since Egypt and the United Arab Emirates are looking to join the club, can easily serve as a stepping stone to dumping the dollar in trade.Monetary autonomy will help Brazil, traditionally under the grip of Washington, to get out from under the thumb of the US, Liu Dian, a visiting scholar at Fudan University, China, told Sputnik.In this regard, the Brazilian President Lula da Silva has urged developing countries to use national currencies in their mutual settlements. This goal is in line with China's strategy to use the yuan more actively in trade transactions.Which Currency Could Replace the Dollar?Liu Dian is therefore not sure whether a single new "super currency" will displace the greenback.If the influence of the yuan is possible in this respect, this system "will give a new impetus to the development of the world economy based on equitable cooperation," Dian emphasized.The yuan has bolstered its position in recent months. For example, according to China Daily, it accounted for 2.19% of global payments in February 2023 up from 1.91% a month earlier.Beijing and Brasilia have inked a bilateral deal on the use of national currencies in trade transactions and the creation of a clearing house for settlements in Chinese yuan and Brazilian real.In addition, the Saudis have reached an agreement with China to pay for oil in part using yuan. That being said, the United Arab Emirates is supplying liquified natural gas (LNG) to China in yuan.Moreover, the first agreement allowing France to buy LNG from China for yuan has already been concluded.
https://en.sputniknews.africa/20230414/brazils-lula-da-silva-slams-dependency-on-dollar-during-visit-to-china-1058604203.html
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multipolar monetary system, multipolar world, ditching dollar, international settlements, alternatives to dollar, abandonment of the dollar, monetary autonomy, us influence, expert's opinion, brazilian president, china's strategy,beijing and brasilia have signed a bilateral agreement on the use of national currencies in trade transactions and the creation of a clearing house for settlements in yuan and brazilian reals.in addition, saudi arabia, reached an agreement, agreement with china, pay for, in yuan, the united arab emirates, supplying lng, bilateral agreement, national currencies, trade transactions, creation of, clearing house, settlements in yuan, lula da silva
multipolar monetary system, multipolar world, ditching dollar, international settlements, alternatives to dollar, abandonment of the dollar, monetary autonomy, us influence, expert's opinion, brazilian president, china's strategy,beijing and brasilia have signed a bilateral agreement on the use of national currencies in trade transactions and the creation of a clearing house for settlements in yuan and brazilian reals.in addition, saudi arabia, reached an agreement, agreement with china, pay for, in yuan, the united arab emirates, supplying lng, bilateral agreement, national currencies, trade transactions, creation of, clearing house, settlements in yuan, lula da silva
How BRICS Can Dethrone Dollar Dominance: Expert Sizes Up Multipolar Monetary System
Ditching the dollar in trade between the BRICS members could become one of the main topics for the club's cooperation in the coming years, and in fact, this is what the Chinese and Brazilian presidents focused on during Lula's visit to Beijing.
As
the dollar loses ground in international settlements, experts foresee various options. Primarily, the fact that BRICS may expand, since Egypt and the United Arab Emirates are looking to join the club, can easily serve as a stepping stone to dumping the dollar in trade.
Monetary autonomy will help Brazil, traditionally under the grip of Washington, to get out from under the thumb of the US, Liu Dian, a visiting scholar at Fudan University, China, told Sputnik.
In this regard, the Brazilian President
Lula da Silva has urged developing countries to use national currencies in their mutual settlements. This goal is in line with China's strategy to use the yuan more actively in trade transactions.
However, "although the international status of the dollar has been shaken, this does not mean that it has lost its strong positions," observes the expert.
Which Currency Could Replace the Dollar?
Liu Dian is therefore not sure whether a single new "super currency" will displace the greenback.
"Most likely, developing countries will use their own advantages in economic growth and trade cooperation to create a multipolar international monetary system," the expert stressed.
If the influence of the yuan is possible in this respect, this system "
will give a new impetus to the development of the world economy based on equitable cooperation," Dian emphasized.
The yuan has bolstered its position in recent months. For example, according to China Daily, it accounted for 2.19% of global payments in February 2023 up from 1.91% a month earlier.
Beijing and Brasilia have inked a bilateral deal on the use of national currencies in trade transactions and the creation of a clearing house for settlements in Chinese yuan and Brazilian real.
In addition, the Saudis have reached an agreement with China to pay for oil in part using yuan. That being said, the United Arab Emirates is supplying liquified natural gas (LNG) to China in yuan.
Moreover, the first agreement allowing France to buy LNG from China for yuan has already been concluded.
