Published December 20, 2023
For much of the year, the BRICS bloc has seen a renewed focus on de-dollarization. Indeed, its 2023 annual summit ended with a five-nation expansion plan and several initiatives to help boost local currencies. Now, amid the expansion of the BRICS bloc, both China and Saudi Arabia are set to drive the global end to the US dollar.
Saudi Arabia was one of the five nations set to join the alliance. Specifically, it joined the United Arab Emirates (UAE), Egypt, Iran, and Ethiopia. However, the nation is poised to be of massive importance to the bloc’s efforts against the dollar. Subsequently, even a former US official has warned of what its cooperation with the initiatives could mean.
China and Saudi Arabia To Have Massive Impact on BRICS De-Dollarization
Throughout 2023, the BRICS alliance has shaken up the geopolitical sector. Indeed, the bloc has consistently challenged the status quo of the global order. Subsequently, they have driven their own goal of multipolarity in the current international landscape. Now, those two things could see continued evolution through the coming year, thanks to recent cooperation.
Specifically, the BRICS bloc is set to see both China and Saudi Arabia drive the global end to the US dollar. Indeed, the two nations have agreed to a landmark currency swap that will continue to push Saudi Arabia’s embrace of BRICS local currencies. Therefore, it will only decrease its use of the US dollar.
Since its inception in the BRICS bloc, Saudi Arabia’s ties to the United States have been a massive talking point. However, the geopolitical implications of its association with the bloc’s de-dollarization could be astronomical. Currency swap agreements between the nation and BRICS affiliates could only further that mission.
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SOURCE: www.watcher.guru
RELATED: Russia, China completely abandon US dollar in bilateral trade, says Russian PM
Published December 20, 2023
Russia and China have completely abandoned the use of Western currencies, including US Dollar, in their bilateral trade, said Russian Prime Minister Mikhail Mishustin on Tuesday (Dec 19).
While speaking during a meeting with his Chinese counterpart Li Qiang in Beijing, Mishustin said nearly all payments were being carried out in Rubles and Yuan.
The Russian PM is on a two-day visit to the Chinese capital.
“We continue to increase the share of national currencies in mutual settlements. If in 2020 this figure was about 20 per cent, then this year we have actually completely gotten rid of the currencies of third countries in mutual settlements,” Mishustin was quoted as saying by Russian media.
Red hot business ties
The Russian leader also stressed that the business ties between the two nations were booming, with bilateral trade turnover already reaching $200 billion ahead of schedule.
He also mentioned that a joint business forum held in Beijing earlier this year saw the attendance of more than 1,500 entrepreneurs from both countries.
“We are creating comfortable conditions for the work of commercial firms on the Russian and Chinese markets. We have an extensive joint agenda,” Mishustin said.
Li Qiang also noted that the partnership between Russia and China had become extremely important against the backdrop of “global turbulence.”
Russia urges BRICS to ditch the dollar
Apart from abandoning the US dollar in its trade with China, Russia is also urging the BRICS organisation to develop financial relations and make mechanisms for settlements within the bloc.
Russian Finance Minister Anton Siluanov made this appeal at the Russia-China Financial Dialogue forum in Beijing on Monday, where his Chinese counterpart Lan Foan was also present.
The BRICS group of emerging economies – which currently incorporates Brazil, Russia, India, China, and South Africa – has been discussing ways to facilitate payments in local currencies between member countries.
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SOURCE: www.wionews.com
RELATED: BRICS-led dedollarization should alarm the US as new members could be most aggressive against the greenback, former State Dept. official says
- US policymakers should be concerned about a BRICS-led dedollarization, Thomas Hill wrote for the Atlantic Council.
- New members can provide BRICS with new trade affiliations to promote dedollarization.
- “Collectively, the expanded BRICS network via these trade organization connections now eclipses 90 countries.”
Published December 17, 2023
The recent expansion of BRICS should be a key cause of concern for the US, as new members along with countries who want to join could amplify dedollarization, according to a former State Department official.
Writing for the Atlantic Council, Thomas Hill noted that Egypt, among others, was added to the BRICS club while Algeria and Tunisia were turned down.
And it foreshadows how North African countries may become some of the “most aggressive advocates” for de-dollarization, he warned.
“The BRICS-led dedollarization effort should alarm US policymakers, especially in light of the recent BRICS membership expansion,” wrote Hill, who is currently the director for the North Africa Program at the US Institute of Peace. “It is clear that traditional US allies, such as Egypt, Saudi Arabia, and the UAE, are already exploring ways to dedollarize, and that Beijing is helping that process move forward.”
This year, the economic bloc — originally composed of Brazil, Russia, India, China, and South Africa — has touted plans to take on the greenback’s dominance in the global financial system.
While BRICS’ attempts to replace the dollar’s hegemony have had limited impact so far, the coalition also elected to admit six new states in August, creating an opportunity for greater global coordination, Hill explained.
He added that they will provide BRICS with access to fresh trade affiliations that can promote alternative currencies.
“By including Egypt, BRICS can influence Algerian and Tunisian de-dollarization through Egyptian leadership inside existing trade regimes. Through Egypt, the UAE, and Saudi Arabia, BRICS will have expanded access to the Greater Arab Free Trade Area (GAFTA) and the Common Market for Eastern and Southern Africa,” Hill wrote. “Collectively, the expanded BRICS network via these trade organization connections now eclipses 90 countries.”
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SOURCE: www.markets.businessinsider.com
