While the crazy growth of the American debt of more than 34,600 billion dollars continues to worry, the BRICS deal a new blow to the greenback. China and Russia, two founding countries of the alliance, have planned 260 billion dollars in trade without recourse to a single American dollar. Only Russian ruble, Chinese yuan and a few euros. Other members of the coalition are expected to follow suit soon. Having perceived the immediacy of the threat, the USA reacted by combining threats and diplomacy. Details.
China and Russia accelerate BRICS dedollarization plan
The threat of dedollarization of global trade has gone beyond rhetoric. Determined to dethrone the greenback, China and Russia plan to carry out $260 billion in trade this year without using a single dollar.
The information was relayed on X by the famous Indian geopolitical analyst SL Kanthan which predicts an imminent generalization of this initiative within the BRICS. Indeed, last year, China and Russia had carried out several official commercial exchanges in yuan and ruble.
Likewise, Russia has for some time been carrying out yuan transactions with several countries including Japan, the United Arab Emirates, Singapore, Malaysia, Thailand, the Philippines, Mongolia and Tajikistan.
China soon to be the world's leading economic power thanks to BRICS?
By accelerating the dedollarization of its trade with Russia, China is pursuing its ambition to dethrone the USA, currently the world's leading economic power. The country has announced economic growth of 5% in 2024. In 2024, it is also one of the largest investors in gold, the asset to which the future BRICS currency should be backed.
To thwart the plan of the two influential BRICS members in favor of dedollarization, the American authorities are playing the sanctions card. Indeed, the Russian-Chinese project to limit trade in American dollars occurs in the context of the Russian-Ukrainian conflict.
The USA is therefore threatening Chinese banks that do transactions with Moscow with sanctions, forcing them to reject payments in Russian rubles. The latter are threatened with being accused of helping the Kremlin fight Ukraine.
However, a Reuters report reveals that American authorities have adopted a diplomatic resolution approach to calm the heat. We will see if this prevents Palestine from joining BRICS after the US veto prevented its full membership in the UN.
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