Putin Brics: De-Dollarization In Progress

Putin Brics: De-Dollarization In Progress. The de-dollarization train has left the station and is going full-steam ahead. That was Vladimir Putin’s message, via video link, to the BRICS business forum taking place in Joburg, South Africa. The Russian president - who’s wanted by The Hague - is attending virtually, after Western pressure to have him arrested put the host nation in an awkward spot. BRICS is fast creating an alternative to the Western-led global economic order. The five member nations have already surpassed the G7 in GDP (PPP). The widely felt need for alternatives to the dollar reflects US abuse of the global reserve currency. Thirty-nine countries are under US sanctions, and thus have limited use for the dollar. Africa is the most sanctioned continent. US macroeconomic policies don’t inspire trust either. By jacking up interest rates, dollar debtors have to pay more for debt-servicing, leaving little for public spending and social programmes. In this way, the Global South subsidises the US at the expense of the most vulnerable. Trends indicate a shift: in one year, the dollar’s share of global currency reserves dropped by 8% - from 55% in 2021 to 47% in 2022. That’s a decline that’s ten times faster than in the preceding two decades. Moving away from the dollar thus makes business sense. Most of the applicants to the BRICS club are resource rich, which lends credibility to speculation the bloc is moving to a gold/commodity-backed currency. With this season’s summit having a special focus on Africa, the opportunities are there for the taking. Will Africa’s ruling class seize them? #Dedollarization #VladamirPutin #BRICS #JohannesBurg #SouthAfrica #Russia #Hague #Macro #Economic #Policies #US #Global #South #Dollar #Business #Sense #Currency