U.S. has been keeping a close eye on BRICS and its plans

U.S. has been keeping a close eye on BRICS and its plans - African News - News

The Global Economic Landscape: A New Dawn for BRICS and the US Dollar

A Bold Shift in Global Economic Power: The BRICS Bloc at the Forefront

The global economic landscape is poised for a significant transformation, with the BRICS bloc playing a pivotal role in this potential seismic shift. The United States remains vigilant and focused on every move made by this influential group of emerging economies, particularly Russia’s persistent calls for nations, especially those in Africa and the Middle East, to abandon the US dollar in favor of their local currencies and, more importantly, the Russian Ruble. This isn’t a mere suggestion but a calculated strategic maneuver aimed at reshaping global financial interactions (source).

Russia’s Bold Push for De-Dollarization: A New Financial Tapestry

At the heart of this matter lies Russia’s aggressive stance on de-dollarization. Instead of quietly suggesting, Russian President Vladimir Putin is publicly advocating for African nations to adopt their own currencies for trade dealings. This proposal goes beyond financial independence; it’s a strategic play to weave a new financial tapestry, placing the Ruble at the center (source). The allure for Africa? A promise of a self-sufficient financial infrastructure that is free from the constraints and influences of Western financial systems.

De-Dollarization: A Global Effort from BRICS

This trend isn’t confined to Africa. The BRICS bloc, a formidable force of emerging economies, is echoing this sentiment across the developing world. Their proposition: a new financial era where the US dollar’s stronghold on global trade weakens, giving way to a more diverse and equitable financial ecosystem.

BRICS: Extending a Helping Hand to Africa

The Russian leader’s message is clear: BRICS stands ready to assist African nations in bypassing the US dollar. The practical steps include connecting African financial institutions to a Russian-created financial messaging system, offering an escape from Western financial networks that currently dictate the terms of cross-border transactions.

De-Dollarization in the Middle East and Beyond

Beyond Africa, the BRICS strategy targets the Middle East, urging a decisive shift from the US dollar, particularly in oil transactions. This isn’t mere economic advice; it’s a countermeasure against the economic sanctions imposed by the US following Russia’s actions in Ukraine. The Russian President’s message to oil-rich nations is unequivocal: abandoning the US dollar could potentially unseat it from its global dominance, particularly in the oil and gas sector.

The BRICS Bloc: A New Currency for International Trade

The strategic inclusion of oil-producing countries into the BRICS fold last year was no mere coincidence. It was a calculated move to advance the de-dollarization agenda, aiming to shift the oil trade’s currency allegiance. However, key players like Saudi Arabia are still considering their BRICS membership, indicating a cautious approach to this monumental financial pivot.

The BRICS bloc is not only encouraging a move away from the US dollar; it’s ambitiously working on introducing a new currency for international trade among its members. This isn’t just about creating an alternative; it’s about establishing a financial ecosystem where member countries’ currencies gain prominence, challenging the hegemony of the US dollar.

Gold: A Hedge Against Vulnerabilities

The undercurrents of this shift are profound. The looming $34.4 trillion US debt is casting a long shadow over developing economies, leading to a strategic accumulation of gold over US dollar reserves. This trend is underscored by the fact that BRICS countries are among the largest gold purchasers, a clear indication of their intent to fortify their economies against the vulnerabilities of the US dollar.