Posted on 03/01/2022 1:34:14 PM PST by nickcarraway
Summary
Existing scholarship has not systematically examined BRICS (Brazil-Russia-India-China-South Africa) as a rising power de-dollarization coalition, despite the group developing multiple de-dollarization initiatives to reduce currency risk and bypass US sanctions. To fill this gap, this study develops a 'Pathways to De-dollarization' framework and applies it to analyze the institutional and market mechanisms that BRICS countries have created at the BRICS, sub-BRICS, and BRICS Plus levels. This framework identifies the leaders and followers of the BRICS de-dollarization coalition, assesses its robustness, and discerns how BRICS mobilizes other stakeholders. The authors employ process tracing, content analysis, semi-structured interviews, archival research, and statistical analysis of quantitative market data to analyze BRICS activities during 2009-2021. They find that BRICS' coalitional de-dollarization initiatives have established critical infrastructure for a prospective alternative nondollar global financial system. This title is also available as Open Access on Cambridge Core.
(Excerpt) Read more at cambridge.org ...
Got a funny acronym anyway.
This talk of de-dollarizing the world economy as been around for quite a while. I recall some saying that was part of the reason Saddam Hussein was killed, because he wanted to promote use of other currencies. I won’t pretend to understand it all, I just recall the talk at that time.
It’s one thing to dethrone the king, it’s another to get everyone to agree on his replacement.
Thanks Fed. Thanks Congress. Thanks voters. You thought the gravy train would go on forever.
Adding the “S” to the classic “BRIC” acronym for investing in emerging markets is a joke! South Africa is about as emerging as Planned Parenthood is about parenting.
I don’t remember hearing that about Hussein. Putin tried to build a coalition to do it ten years ago. But, the only one that seemed somewhat realistic is the Petroyuan.
Agreed. I think the “S” is just about making it sound like a plural. Saudi Arabia would be a better addition than South Africa.
Personal opinion, what will replace the dollar as the international reserve currency in the next few decades will be bitcoin. The effect on our economy will be just as devastating but at least no other nation’s currency will benefit.
Absolutely. All they need is a country willing to play the patsy - to absorb the cost of large and ongoing trade deficits. If China is willing to hollow out its industry in order to make the yuan a significant reserve currency, that should be entertaining to watch. Note that Germany, Japan and Switzerland, some of the candidates for reserve currency boltholes, have negative interest rates for this very reason - to discourage foreigners from parking their cash there. Reserve currency status artificially jacks up your currency and makes your exports less competitive.
still have lots of precious mineral reserves -if/when they can get to it.
It’s been talked about for years. The BRICS coalition could bring down the dollar - that is, if we don’t do it ourselves.
BRICs could do it in theory. But the biggest problem they have is lack of trust. While they hold a third of the world’s population in just 4 countries. Those four countries don’t like each other. And more importantly, they don’t trust each other. So for them to throw in with each other at the expense of the western world would be to give China the upper hand on the currency. They may have their issues with the US, but none of them trust China. American borders have been virtually the same since the second world war. But China has grown with current skirmishes on every border they have including Russia and India. Each BRIC country has the strength to become a first world country on their own. And they are likely to do that. Or form alliances with neighboring countries or in India’s case with strategic counties.
When someone with the demagogue status of Hussein is killed, all manner of theories and rumors tend to circulate, with the knowledge that as the subject is now deceased, he cannot challenge their statements. I heard the remarks about currency on some of the Sunday Talk shows popular back then, back when I owned a TV.
Would now, if ever, really be a good time for China to try that?
I vote more likely we do it ourselves.
ruble now worth less than a penny
[Would now, if ever, really be a good time for China to try that? ]
No.
Next!
Well, since Russia's already there...
Throw in OPEC and all the nations caught in China’s Belt&Road trap, and you may have something. Given the pusillanimity of the West generally, anything is plausible.
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