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. West vs the rest: World opposes sanctions, only US & Europe support them, Facebook censors journalist Seymour Hershs report on Nord Stream pipeline attack, US invites authoritarian far-right regimes to Summit for Democracy, UN lies about US military occupation of Syria, reporter calls out Ukraine hypocrisy, US threatened to invade International Criminal Court. Many nations are now seeking financial alternatives, afraid that they could be the next target. China, the emerging and competing empire, has already started the process of dumping the American dollar in a careful and coordinated fashion. Sooklal says the list includes 13 countries that have formally asked to join and an additional six countries that have informally requested to be part of the alliance. ", "Biti Rubbishes De-dollarization ZimEye", "Biti Dissects New Law On The Use Of Foreign Currency In Zim [Full Thread] Pindula News", "Zimbabwe to introduce gold coins as local currency tumbles", "Zimbabwe to mint gold coins to tackle rising prices", "Explained: Why Has Zimbabwe Introduced Gold Coins As Legal Tender", "Zimbabwe launches gold coins to stem inflation", "Zimbabwe debuts gold coins as legal tender to stem inflation", Regional Comprehensive Economic Partnership, South Asian Association for Regional Cooperation, Customs Union of Belarus, Kazakhstan, and Russia, Cooperation Council for the Arab States of the Gulf, Economic and Monetary Community of Central Africa, https://en.wikipedia.org/w/index.php?title=Dedollarisation&oldid=1152377094, Wikipedia articles in need of updating from August 2022, All Wikipedia articles in need of updating, Creative Commons Attribution-ShareAlike License 3.0, This page was last edited on 29 April 2023, at 21:44. The dollar collapse is a deliberate plan to force the starving masses into a digital dollar control grid. For mining companies, higher gold prices can mean more profits per ounce if costs remain unaffected. These countries and territories include Lebanon, Hong Kong, Saudi Arabia, Grenada, and Aruba. In fact, hording these metals are counterproductive. Bravo! This is particularly concerning since China holds so much of America's debt and so many US dollars. Boy, if thats done John McCormick, this comment is beyond reproach!!! 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. BRICS was formed back in 2006, and the original group did not include South Africa, which joined in 2010. document.getElementById( "ak_js_1" ).setAttribute( "value", ( new Date() ).getTime() ). 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. 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. Speaking during his visit to China, the veteran leader said, Why should every country have to be tied to the dollar for trade? 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. China and Russia are leading the pack in the de-dollarisation drive. The state of Nevada alone accounted for 72% of U.S. production, hosting the worlds largest gold mining complex (including six mines) owned by Nevada Gold Mines. Updated Date: In essence, its crazy over here. 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 . Just recently, Bangladesh became the 19th country to agree to bilateral trade in Indian rupees. Thats the problem with America today! The Russian leader added, We support using Chinese yuan in transactions between the Russian Federation and its partners in Asia, Africa and Latin America. There are several countries that have been calling for reducing reliance on US dollar for decades. So what is the when? 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. Just two days before China and Brazil revealed their deal to trade in local currencies, the South American giants former President Dilma Rousseff officially assumed her new role as chief of the New Development Bank (NDB) in Shanghai. LOOK; DID YOU MISS IT? In recent months, Brazil and Argentina have discussed the creation of a common currency for the two largest economies in South America. [73], After a year of the RTGS Dollar having been the only legal tender,[74] Zimbabwe adopted dollarization due to hyperinflation. The commodities-to-equities ratio recently hit a 50-year low. 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. .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. [68] The system had been in development since 2014, after the United States government threatened to disconnect Russia from the SWIFT system. its interesting how many idiots have posted their texts here. like star treck where humans work for the betterment of science and evolution, nature etc. Your email address will not be published. Barbados. Required fields are marked *. Brazils leftist President Lula da Silva has called for Latin America to develop a new currency for regional trade, which he calls the Sur. Drugs from Nigeria . [50] On 11 February 2019, Russian deputy foreign minister Sergei Ryabkov stated that Russia would be interested in participating in INSTEX. The relationship, however, is not always straightforward and can be affected by various other factors, such as global economic growth, supply and demand, inflation, and other market events. These countries include Russia, China, India, and even Germany, France, and the United Kingdom. Thank YOU, Ben Norton for sharing these significant changes taking place. However, many nations are looking for alternatives to the greenback to reduce their dependence on the United States. 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. Before the end of this year USA inflation would reach 10% if not more. Too many leftist idealist that really have a failed clue on just about everything OMG! 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. It is followed by the Euro as well as the British Pound which are also used globally. 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. [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. With the price of gold rising since the 1980s, global gold production has become increasingly widespread. Will it be the yen, the euro or even the rupee? Sur combines the currency of Argentinas peso and Brazils real. As the Financial Times acknowledged in a March report that these were historic developments and part of a transition to a multipolar currency world.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. Once the supply has adequately grown to meet demand, the cycle enters a downswing. 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 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. Mrs. Dilma Rousseff, the NDB newly elected President, has started her first day in office in the NDB Headquarters in Shanghai, China. [40], It made agreements with Australia, Russia, Japan, Brazil, and Iran to trade in national currencies. China And Brazil Ditch US Dollar In Trade Deal Before BRICS Summit", "Beijing creates its own global financial architecture as a tool for strategic rivalry", "European powers launch mechanism for trade with Iran", "INSTEX, A New Channel To Bypass U.S. Sanctions And Trade With Iran", "Europe Circumvents U.S. Sanctions On Iran", ": INSTEX ", "INSTEX successfully concludes first transaction", "European countries to send medical aid to Iran in first INSTEX transaction", "Europe dissolves Iran trade system that never took off", "An Indian rupee-ruble trade arrangement with Russia may be ready in a week", "Russia And Iran Experiment With Stripping Dollars From Their Bilateral Trade", "Iran, Russia take major step for de-dollarizing mutual trade", "UPDATE 1-Iran-Russia trade in domestic currencies -Iran envoy", "Explained: How the Indian rupee is going global and drawing interest from more nations - Times of India", "Russia and Iran are working on a gold-backed cryptocurrency to take on the dominant dollar, report says", "Russia And Iran Eye Up Trade Using Cryptocurrencies To Avoid Dollars And Sanctions", "Brazil and Argentina to discuss common currency", "Argentina and Brazil propose a bizarre common currency", "Brazil and Argentina to start preparations for a common currency", "Drubbing the Dollar: China and Brazil ditch dollar, strike deal to settle trade in yuan, real", "Russia to cut share of U.S. dollar in National Wealth Fund, mulls other currencies", " . The media outlet added that Malaysias central bank is developing a payment mechanism so the Southeast Asian country can trade with China using its own currency, the ringgit. 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. 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. North American countries Canada, the U.S., and Mexico round out the top six gold producers, collectively making up 16% of the global total. As per a Reuters report, Buenos Aires said that it aims to pay $1 billion of Chinese imports in yuan instead of dollars and thereafter around $790 million of monthly imports will be paid in yuan. Printing money just like Zambia..it went down. A CBDC properly backed by this public blockchain can provide the underlying value. . 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. Who decided the dollar would be the (world's) currency?. 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. Despite major structural shifts in the international monetary system over the past six decades, the US dollar remains the dominant international reserve currency. This bank was created with the intention of bypassing the dollar, and allowing free trade to occur between nations without the need to trade for dollars first, as is currently the format under the petrodollar system. Scams Crypto101 HodlX 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. i think one day we will evolve to the point where value will not be money but something else.. April 28, 2023 12:10:40 IST, Dollars share of global reserves has declined by 11 per cent since 2016 on this adjusted basis, a report by Eurizon SLJ Asset Management said, Businesses in Bangladesh have welcomed the decision to settle trade with India in INR and taka as they think that the arrangement will reduce pressure on forex reserves and promote trade, Brazil has not joined Western nations in imposing sanctions on Russia and has refused requests to supply ammunition to Ukraine. Hording precious metal inflates their prices and produces shortages and waste where these metal should only be applied for industrial use. Several countries on the African continent are advocating de-dollarization as well. In fact, in 2011, Japan and China agreed to dump the dollar and trade with their respective currencies. The U.S. Dollar wont go away. The SWIFT system a abolished in favour of another better system perhaps the Quantum Financial system is our new world. Allowing anyone to come through? We should work together. Both countries, which are perceived as anti-US, are trading in their local currency with one another. Because Russia was able to neuter sanctions, the Deep State had to resort to sabotage of the Nordstream 2 pipeline. See: Two Weeks that Shook the Dollar (posted multiple times and in at least a dozen LinkedIn groups). "According to the RUMOR, Operation Sandman will "put the US Dollar to sleep" by having all 142 countries repudiate the currency on the same day, and refuse to continue accepting it for payment in Trade. Chinese President Xi Jinping visited Moscow, national currencies are increasingly used in bilateral trade, Beijings attempts to undermine the US dollar, Latin America to develop a new currency for regional trade, struggle between neoliberalism and socialism, Malaysia to continue depending on the dollar. 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] 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. Almost every establishment will take USD, but smaller and newer notes are preferred. You should read the book by Brad Rigden, Bad Money. 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. 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. Also forecasts where this axis is headed and the implications for the monetary system and world order. With the most recent commodity supercycle peaking in 2011, could the next big one be right around the corner? Think! 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. 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! This means that contracts for commodities like crude oil and natural gas are almost always priced in dollars. According to the same data, the system will be put into operation within a week. A Bloomberg report quoted Malaysias prime minister Anwar Ibrahim as saying, There is no reason for Malaysia to continue depending on the dollar.. [6] Between 1965 and 1981, the U.S. dollar lost two thirds of its value. 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 Moreover, it doesnt seem to be a longterm viable option. (file pic) pic.twitter.com/7J9KYipvmB, People's Daily, China (@PDChina) March 29, 2023. 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 . [32], In December 2015, the Kazakhstan government and national bank announced plans to reduce dollar dependency and strengthen the national currency. Save my name, email, and website in this browser for the next time I comment. What happens to the rest of the world? Image used for representational purposes/Freepik. 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. Dollar fast losing dominance as global reserve currency as rupee, yuan rise, De-dollarisation: Bangladesh dumps US currency, becomes 19th country to trade with India in rupees, Brazil 'parroting Russian and Chinese propaganda' on Ukraine, says White House, Argentina dumps US dollar for Chinese yuan: How nations are jumping on the de-dollarisation bandwagon. Kenya has signed an agreement with Saudi Arabia and the UAE to buy oil in March, using the shilling the countrys local currency. As of April 25, gold prices were hovering around the $2,000 per ounce mark and nearing all-time highs. will only add to your problems.. e.g.check prices for gas. [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. Countries with their own versions of the dollar 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. Great article! The book discussed and predicted these events. this is the result liberals goodie two shoes. 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. We should continue promoting settlements in national currencies, and expand the reciprocal presence of financial and banking structures in our countries markets. 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. 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. pic.twitter.com/JOLblXhhzQ, New Development Bank (@NDB_int) March 28, 2023. None of these cryptos for the exception of one, can facilitate micropayments or perform peer-to-peer payments. There was no legal process there was no nothing. In addition, central banks (especially Russias and Chinas) have bought gold at the fastest pace since 1967 as countries move to diversify their reserves away from the dollar. Reliable source this story is .when there no author to a story its bs . ASEAN Briefing noted that Indonesia, Malaysia, Singapore, the Philippines, and Thailand agreed on this in November 2022. This has nothing to do with a global conspiracy to dump the dollar. This has prompted more interest rate hikes around the world, as central bankers try to increase the value of their own currencies. Economic statecraft is a roundabout way of saying economic warfare. 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. "[15], In April 2022, four European gas companies made trade payment settlements in rubles. In light of the recent developments Iran is the most pressured nation to drop the dollar with Tehran having partially adjusted trade without the US currency, Alexandre Kateb, president of Competence Finance SAS, told RT. Then, South Africa took the helm thanks to the massive discovery in the Witwatersrand Basin, now regarded today as one of the worlds greatest ever goldfields. The best thing that can and should be done to the U.S. is to vaporize it with thermo-nuclear devices!!! [69] Lukoil, a state-owned company, had announced that it will find a replacement for the dollar. Dear God! Money Market Funds/Accounts. "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. Also see: The World is Splitting Into Two Blocs, Each with Its Own Reserve Currency The f did I just watch? [36], Russia had been planning to buy more yuan in the foreign exchange market in 2023 for trade settlements. Blockchain Regulators 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. [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. [33] In August 2016, after inflation surged to a 6-year high, the Kazakhstan central bank governor stated that it is a necessity to kickstart dedollarisation. 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. If the shifts in central bank reserves are large enough, they can affect currency and bond markets. Follow us on Facebook, Twitter and Instagram. China . Moving away from an established currency like dollar will impact a countrys networking effect and create substantial barriers. CBDCs running on one public blockchain are needed. The US dollar has risen by almost 15% against some of the world's most traded currencies this year. India Ranked the world's sixth-largest economy, India is one of the biggest merchandise importers. 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. [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. ASEAN is developing a cross-border digital payment system that would allow the use of local currencies in regional trade. 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. In a conference in Singapore in January, multiple former Southeast Asian officials, The UAE and India are in talks to use rupees to, For the first time in 48 years, Saudi Arabia said that the oil-rich nation is. ", "The rise and fall of the dollar (or when did the dollar replace sterling as the leading reserve currency? Open the border s , let all African people come to SA , as Africa is for all Africans. 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. [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. 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. 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. Also read: Xi Jinping in Moscow: Will Chinese president convince 'good old friend' Vladimir Putin to end war in Ukraine? Beijing and Brazil have also dropped the dollar in bilateral trade. This is because Kenyas dollar reserves are running low. [1], The U.S. dollar began to displace the pound sterling as international reserve currency from the 1920s since it emerged from the First World War relatively unscathed and since the United States was a significant recipient of wartime gold inflows. [11][12], In December 2022 at China - GCC Summit, President Xi Jinping called for Oil trade payments to be settled at yuan. [34][35], In June 2021, Russia stated it will eliminate the dollar from its National Wealth Fund to reduce vulnerability to Western sanctions just two weeks before Russia's president Vladimir Putin held his first summit meeting with U.S. leader Joe Biden. 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. The U.S. dollar has dominated global trade and capital flows over many decades. Where are Clean Energy Technologies Manufactured? 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. Iran, which is sanctioned by the US, is also carrying out trade with Russia and China in the local currency. 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. Secondly, to replace the dollar with another currency, it needs to have a certain degree of stability, liquidity, and acceptability. 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. 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.
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