Report: BRICS countries consider dollar’s response to global hegemony

Chinese experts have urged BRICS (Brazil, Russia, India, China and South Africa) country leaders to consider countering the dollar, which is seen as an abuse of global hegemony. However, experts admit that attempts to weaken the dollar’s dominance will take time.

BRICS countries’ dependence on a US-centric global financial system

Chinese experts have urged BRICS countries, including Brazil, Russia, India, China and South Africa, to confront the US government’s current abuse of global dominance in the dollar, a report said. According to experts, BRICS countries can achieve this by strengthening their trade ties and limiting their reliance on a financial system dominated by the US dollar.

As explained in the Global Times reportThe phone call of experts was held on May 19, ahead of the virtual meeting of the foreign ministers of five countries. At the meeting, the foreign ministers were scheduled to discuss ways to strengthen solidarity, form a consensus, and support emerging countries. Bringing a bigger voice to the market in global governance.

Cao Yuanzheng, chairman of BOC International Research, argued against BRICS countries’ continued reliance on US-centric financial systems, arguing that the US prioritizes domestic demand and is less concerned about potential consequences. of that policy. Yuanzheng said:

US dollar-led international trading and financial markets are increasingly showing internal contradictions as US policy prioritizes domestic needs over international ones.

US Dollar Neutrality

The expert added that recent sanctions against Russia and the US government freezing Russia’s foreign exchange and gold reserves mean the US dollar is no longer a neutral currency. Meanwhile, the report hinted at China’s yuan currency, which is popular in countries and regions along China’s route. Belt and Road Initiative, can be an alternative to the dollar. Thus, agreements between BRICS countries could potentially increase the use of the yuan in certain regions, the report said.

However, other experts interviewed by the Global Times warned that it would take time for the dollar to lose its dominance. Former central bank governor Zhou Xiaochuan expressed similar sentiments recently. Xiaochuan previously warned that reducing the dollar’s dominance will depend on whether businesses and the public are willing to abruptly abandon their long-standing currency.

Tian Yun, former vice president of the Beijing Economic Operation Association, said the yuan’s chances of becoming a major settlement currency for the US dollar depend on other countries’ trust in China’s development.

But over the long term, Zhou Maohua, a macroeconomic analyst at Everbright Bank, said the Chinese currency’s role in global settlements, settlements and foreign exchange reserves is growing.

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Terrence Jimwara

Terence Zimwara is an award-winning Zimbabwean journalist, author and author. He has written extensively on the economic problems of some African countries and how digital currencies can provide Africans with an escape route.

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