Some “BRICS and De-Dollarization” News Wednesday 6-19-2024
BRICS Financial System Accelerates As Malaysia Plans To Join BRICS & De-Dollarize Asia
Sean Foo: 6-19-2024
In another shocking update, another Asian country wants to join BRICS. Malaysia, an ASEAN nation, wants to join the bloc.
The agenda is all about de-dollarizing their economy to make it more resilient against big moves in the reserve currency.
Here's why Malaysia's making this big leap and why the West must pay attention.
Timestamps & Chapters:
0:00 Malaysia's Sudden Membership Bid
2:33 Breaking Away From The US Dollar
5:46 China Brings Economic Windfall
9:00 BRICS Financial System Accelerates
12:19 BRICS Is Winning Big
China Ditch US Bonds: How it impact the Global Economy?
Fastepo: 6-19-2024
China has recently sold approximately $50 billion in US Treasury bonds, reducing its holdings to the lowest level in 14 years.
This move is part of China's strategy to decrease its dependence on US financial instruments amidst ongoing geopolitical tensions with the United States.
As of March 2024, China's holdings have dropped to $767 billion, down from $816 billion in December 2023.
China's actions reflect a broader trend of "dedollarization," where the country aims to reduce the dominance of the US dollar in international trade and finance.
This strategic shift has significant implications for global financial markets, particularly in the context of rising US interest rates and the increasing yield spreads between different types of US debt instruments.
BRICS Makes Major De-Dollarization Announcement
Geopolitical Analyst: 6-19-2024
At a meeting Tuesday in Russia, BRICS announced that it is in the final stages of its de-dollarization mission.
According to BRICS representatives at the meeting, their new payment system was confirmed, and it will become a competitor for the current global reserve US dollar.
Economic ministers of leading BRICS member countries have announced that they are in the final stages of completing complete de-dollarization.
The bloc’s goal is for its multipolar international monetary system to mark the end of the US dollar as the sole global reserve currency.
A new payment system has been rumored and discussed for a significant time, but now the BRICS alliance has officially confirmed its development and first target: the US Dollar.
The BRICS economic alliance has sought to challenge the global economic status quo for the last two years. The bloc has sought increased resistance from the Western-dominated financial order. Those efforts have come in the form of increased de-dollarization practices and the promotion of the bloc’s own local currencies.
Furthermore, the BRICS alliance initiated this two-day meeting with 20 countries in attendance to discuss expansion and economic cooperation.
Foreign Ministers of countries belonging to the bloc are currently in the Russian city of Nizhny Novgorod.
Topics at hand included the upcoming expansion of the BRICS+, de-dollarization efforts, and building further economic and trade relations with one another.
Now, its work in developing its BRICS currency has also been discussed. BRICS aims to cut ties with the US dollar and use local currencies for all cross-border transactions among member nations.
The move is attracting other developing countries to join BRICS in 2024.
The idea of ditching the US Dollar for local currencies and a new global reserve has become more popular.
The alliance’s gold-backed currency concept and CBDCs are considered worthy alternatives.