Zimbabwe’s former finance minister, Tendai Biti, does not believe BRICS’ promises of financial autonomy via the planned exit from the dollar. For him, this project on which the alliance of countries is actively working has nothing positive. Even less for his country which plans to integrate the BRICS, which is entirely understandable.
Dedollarization, a perilous path for the BRICS
The BRICS are resolutely working to end the dominance of the US dollar in international transactions. Just recently, they launched a payment system based on blockchain and cryptos.
But while the project has many supports among the States, some voices sound the alarm as to the potential catastrophic consequences for the bloc. Tendai Biti, the former finance minister of Zimbabwe, is one of them.
Speaking on the issue, as Zimbabwe wants to join BRICS, the former financier warned the state against blindly following the trajectory of the bloc. Particularly with regard to the BRICS plan to exit the dollar.
Tendai Biti warns of looming financial abyss for Zimbabwe. This, predicting disastrous consequences for the constituent countries of the BRICS if they were to embark on this path ” perilous “ according to him.
The “peril” that must be feared
According to the former Minister of Finance of Zimbabwe, the exit from the dollar so desired by the BRICS is nothing more than a utopia. This, especially since the conditions for its realization are very far from being met.
“The conditions for dedollarization do not exist”, did he declare. Moreover, he rejects the idea that local currencies could magically usurp the dominance of the US dollar.
For him, the exit of the dollar will be “an absolute disaster that will cost workers and retirees dearly”. A movement, whose implications extend beyond BRICS to affect developing countries where dependence on the dollar is often a lifeline.
Tendai Biti’s opinion comes at a time when Zimbabwe is grappling with deep financial problems exacerbated by the setbacks of its local currency. Certainly, he thinks the promises of the new BRICS development bank offer a glimmer of hope. However, he believes that the risks associated with abandoning the US dollar are so great that careful deliberation is required.
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