There is a new collaboration happening right now, that seeks to replace the U.S dollar as the global reserve currency and replace it instead with something being worked on by Brazil, Russia, India, China and South Africa (BRICS), according to Russian President Vladimir Putin.
While speaking at the recent BRICS business forum, Putin noted that the new scheme is designed to provide an alternative for transacting internationally, instead of using the U.S dollar, which is continuing to hemorrhage value by the day due to growing inflation.
“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” Putin said.
The plan includes eventually phasing out Western financial systems like SWIFT.
BRICS countries have all indicated that they have begun working on the joint venture to do just that.
Dipanjan Roy Chaudhury reported from the Economic Times, “The BRICS countries have been also boosting the use of local currencies in mutual trade.”
The BRICS meeting also included discussions about free trade deals, according to the Chinese state-owned media outlet South China Morning Post, a sweetener to go along with Putin’s new world reserve currency.
“To build a free-trade agreement is a very important means to tap this trade potential, which China is willing to discuss with other BRICS countries,” said Wang Shouwen, China’s vice-commerce minister.
Collectively, BRICS countries contribute about one-fifth of global trade but currently are only trading about 6 percent of the trade volume among the members.
Having a new currency will boost trade, and will be underpinned by several currencies, real, rubles, rupees, yuan and rand.
China, Russia and India are all currently negotiating deals for chain stores and Chinese cars and equipment into the Russian market.
While Western allies have been nearly cut off from Russian oil and gas because they refuse to pay for it with rubles, China and India have suddenly seen a “noticeable increase.”
“There are indeed a lot of uncertainties and challenges in the world economic recovery, for the BRICS countries … it is in the common interest to work together to deal with these challenges,” Wang said at the meeting.
This would spell the end to the U.S dollar dominance and would allow BRICS to build its own influence on the globe. Chris Turner, the global head of markets at ING, when asked if he thought that might happen soon, he said:
“While there could be some high-profile statement of political ambitions to embark on this project, we doubt the mercantilist nations involved in BRICS would want to transfer valuable FX reserves into this more local sphere of influence.”
The way that inflation has rocked the U.S dollar since Biden took office, it won’t be long before BRICS countries have a hold of the international markets., spelling the end of the Globalist “elites” exclusive banking systems in the West.