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:
FXStreet — PBOC Sets USD/CNY Reference Rate at 7.0856 vs 7.0881 Previous
Reuters — Dollar Hits Two-Week High Against Yen as Trade Talks, Fed Meeting Loom
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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 currencies, alternative 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:
Watcher Guru — BRICS Capitals Sign Moscow Pact, Mark New Phase of De-Dollarization
Pars Today — BRICS capitals sign cooperation agreement in Moscow
Mehr News Agency — BRICS capitals cooperation agreement signed in Moscow
TV BRICS — Moscow City Duma launches new format of cooperation between BRICS capitals
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