Seeds of Wisdom RV and Economics Updates Wednesday Evening 10-29-25

Good Evening Dinar Recaps,

Currency — Currency Diplomacy and the Slow Shift from Dollar-Only Settlement

How FX moves and central-bank signalling are becoming diplomatic tools, and what that means for alliance economics

Overview
Currency markets are not just pricing interest rates or growth; they are being used deliberately as diplomatic signalling tools (fixes, verbal intervention, managed exchange-rate adjustments). Recent PBOC fixes and dollar moves around trade optimism show how policy and diplomacy interact in FX. FXStreet+1

Key developments

  • The People’s Bank of China set a stronger USD/CNY midpoint in recent sessions, signalling support for a firmer yuan amid trade diplomacy. 

  • The U.S. dollar weakened modestly as trade optimism increased, reducing some safe-haven FX demand. 

What this means for global alliances

  • Instrumental currency policy: States now use FX policy to reward or discipline partners — coordinated moves (e.g., synchronized fixes or intervention) can be an instrument of alliance economics.

  • Local-currency preference: As trust networks deepen, countries in the same political/economic bloc increasingly prefer settling trade in local currencies, reducing USD invoicing for aligned partners.

How this accelerates financial restructuring

  • Greater use of local-currency settlements and swap lines reduces transaction reliance on the USD → this is a structural shift in the plumbing of cross-border finance

  • Central bank reference-rate management and verbal signalling become part of diplomatic toolkits: currency action is policy and diplomacy simultaneously.

Practical signals to watch

  • New agreements to invoice or settle trade in local currencies (bilateral announcements).

  • Expansion of central bank swap lines or regional FX stabilization facilities.

  • PBOC and other major central bank midpoint/fixing behavior around high-profile diplomatic events.

Bottom line: Currency policy has become a diplomatic lever. The gradual shift toward multi-currency settlement, coordinated fixes and regional FX facilities will be a core pillar of the emerging financial architecture.

This is not just politics — it’s global finance restructuring before our eyes.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources:

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BRICS Capitals Sign Moscow Pact, Mark New Phase of De-Dollarization

How a municipal-level pact is accelerating the shift away from the dollar and reshaping global alliances

Overview
The BRICS (Brazil, Russia, India, China, South Africa + newer members) de-dollarization drive has taken a concrete step forward: on October 28, 2025 the Moscow City Duma hosted representatives from capitals and major cities of BRICS countries at a signing ceremony of a cooperation agreement aimed at reducing reliance on the U.S. dollar and building a multipolar financial system. 

Key developments

  • Mayors, city council heads and parliamentary officials from BRICS member capitals gathered in Moscow to sign the agreement. Pars Today+1

  • The agreement emphasises trade in local currenciesalternative cross-border payment systems and municipal diplomacy as tools to challenge Western-dominated financial structures. 

  • Russian Deputy Prime Minister Alexander Novak claimed Russia has shifted to local-currency settlements with China and India by 90-95%. 

What this means for global alliances

  • Vertical integration of alliances: National governments are now being complemented by municipal layers of cooperation — capitals and cities aligning with national foreign-policy aims.

  • New axis of trade & finance: Capitals of BRICS nations coordinating creates a parallel network of economic diplomacy outside traditional Western structures.

  • Shared currency strategy: By promoting local-currency trade and payment systems, BRICS members deepen their mutual dependencies and signal a combined alternative to dollar-centric alliances.

How this accelerates financial restructuring

  • The pact signals a step toward settlement systems outside the dollar-clearing architecture (SWIFT/dollar-invoiced trade).

  • It strengthens the trend toward local-currency invoicing and payments, which reduces exposure to U.S. monetary policy and sanctions risk. 

  • City-level diplomacy means the infrastructure of finance is being re-wired from the ground up—making the architecture of global finance more distributed and less U.S./West-centric.

Practical signals to watch

  • Announcements from BRICS capitals about trade settlements in local currency or bypassing the dollar.

  • Establishment of municipal or regional clearing and payments platforms tied to BRICS frameworks.

  • Further coordination of policy between national and city governments in BRICS nations around de-dollarisation and finance.

Bottom line:
This isn’t just rhetorical: by institutionalising cooperation at the capital/city level, BRICS is laying a structural foundation for a multipolar financial system. The dollar remains dominant today—but the scaffolding for its alternative is being built.

This is not just politics — it’s global finance restructuring before our eyes.

Seeds of Wisdom Team
Newshounds News™ Exclusive

Sources:

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Seeds of Wisdom Team RV Currency Facts Youtube and Rumble

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