China has recently expressed its support for the expansion of the BRICS (Brazil, Russia, India, China, and South Africa) group to challenge the dominance of the US dollar in global trade and finance. This move comes as tensions between China and the US continue to escalate, with both countries imposing tariffs on each other’s goods and engaging in a trade war.
The Daily Hodl reports that China’s support for the BRICS expansion was announced by the country’s central bank governor, Yi Gang, during a meeting of the International Monetary Fund (IMF) in Washington. According to Yi, the BRICS countries should work together to promote the use of their own currencies in international trade and investment, rather than relying on the US dollar.
This move is seen as a way for China to reduce its dependence on the US dollar, which has been the dominant currency in global trade and finance for decades. The US dollar is used as a reserve currency by many countries around the world, and is also the currency in which most international transactions are denominated.
However, China has been working to promote its own currency, the yuan, as an alternative to the US dollar. In recent years, China has been pushing for the yuan to be included in the IMF’s basket of reserve currencies, alongside the US dollar, euro, yen, and pound sterling. This move would give the yuan greater international recognition and make it easier for other countries to hold yuan-denominated assets.
The BRICS countries have also been working to promote their own currencies in international trade and investment. In 2014, they established the New Development Bank (NDB), which provides funding for infrastructure projects in developing countries. The NDB is funded by contributions from the BRICS countries and is denominated in their own currencies, rather than the US dollar.
The BRICS countries have also been discussing the possibility of creating a common payment system that would allow them to bypass the US-dominated SWIFT system. This would make it easier for them to conduct trade and investment transactions with each other, without having to use the US dollar as an intermediary currency.
The move by China to back the expansion of the BRICS group is seen as a significant challenge to the dominance of the US dollar in global trade and finance. However, it remains to be seen whether the BRICS countries will be able to successfully promote their own currencies and challenge the US dollar’s position as the world’s reserve currency.
- SEO Powered Content & PR Distribution. Get Amplified Today.
- EVM Finance. Unified Interface for Decentralized Finance. Access Here.
- Quantum Media Group. IR/PR Amplified. Access Here.
- PlatoAiStream. Web3 Data Intelligence. Knowledge Amplified. Access Here.
- Source: Plato Data Intelligence.