The US dollar is on a precarious threshold as the multipolar currency era threatens its global positioning. With new currencies emerging rapidly, the US dollar is gaining widespread scrutiny, primarily due to constant weaponization and debt metrics that continue to erode its prestige.
As the new era of currency systems emerges, the world order is also changing, which raises the question of whether the US dollar is truly bracing for an inevitable collapse.
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New Alliances Are Threatening the US Dollar’s Anatomical Order
The recent BRICS conference is the latest highlight of recent times. The conference, which has brought the leading political entities of the world together, is now streamlining a new agenda. BRICS has officially unveiled the alliance’s new mock-up currency bill, which may represent its agenda to counter the USD’s prominence.
Global leaders, including presidents and prime ministers of the BRICS alliance, attended the summit. The conference has made pivotal headlines, primarily due to Russia-China’s “particular” stance on the US dollar and constant weaponization. Putin and Jinping also discussed reasons that led them to forge or seek new alternatives.
While speaking about the US dollar, Vladimir Putin, the president of Russia, said that the constant weaponization of the USD was a mistake despite the currency’s centrality to the world financial order.
“That the dollar was used as a weapon. It is true, and we see that. I think it is a great mistake by those who do it.” Putin said.
At the same time, Putin shared how his nation was forced to ditch the dollar, leading him to find viable currency alternatives to sustain his economy.
In addition, Putin further proposed launching a BRICS-based grain exchange to facilitate smooth trade mechanisms and promote the concept of food security.
“A number of BRICS countries are among the world’s largest producers of grain, vegetables, and oilseeds. We propose opening a BRICS grain exchange, which would facilitate the formation of fair and predictable price indicators for products and raw materials, taking into account their special role in ensuring food security.”
JUST IN:
Russian President Putin proposes plan to create a BRICS-based grain exchange.
“A number of BRICS countries are among the world’s largest producers of grain, vegetables, and oilseeds.
We propose opening a BRICS grain exchange, which would facilitate the formation… pic.twitter.com/208YW0cku1
— BRICS News (@BRICSinfo) October 24, 2024
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China Promotes Use of Alternate Currency
The ongoing BRICS Summit also urged Xi Jinping to make a special announcement regarding the alliance’s long-term progress. The Chinese PM announced that the alliance should focus on promoting a new currency system to establish a new stable financial footing in the global economic landscape.
“There is an urgent need to reform the international financial architecture, and BRICS must play a leading role in promoting a new system that better reflects the profound changes in the international economic balance of power.”
JUST IN:
Chinese President Xi Jinping says BRICS must promote a new financial system.
“There is an urgent need to reform the international financial architecture, and BRICS must play a leading role in promoting a new system that better reflects the profound changes in the… pic.twitter.com/dXFoZ1Rhil
— BRICS News (@BRICSinfo) October 23, 2024
If the BRICS currency-centric vision materializes, it may derail the US dollar in the long haul, greatly impacting its prestige. At the same time, Trump’s idea of levying tariffs on countries moving away from the dollar may backfire, as it may compel other nations to find other currency alternatives.
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