top of page
Writer's pictureCosDream News

Putin starts self-rescue, BRICS takes a new direction, and the renminbi's status rises!

The news of the BRICS countries planning to establish a new international payment system has attracted widespread attention.


This plan is seen as a significant challenge to the dominance of the dollar, which has ruled the international financial system for over 40 years, marking a potential shift in the international financial order.

Recently, after reports emerged that Russia and other BRICS countries had reached a consensus on this new international payment system, the United States also expressed its position on the matter.


This raises curiosity: "What will be the U.S. response?" "Will this affect us?" Let’s delve into this issue together.


Since the 1970s, the dollar has dominated the international financial system.


As the global reserve currency, the dollar holds a crucial position in international trade and financial transactions.


However, the dollar's supremacy is currently facing challenges, especially amid escalating geopolitical tensions.


After being excluded from the SWIFT system, Russia proposed establishing a new international payment system, a suggestion supported by other BRICS nations, which has sparked international debate.

The SWIFT system, a global financial transmission network, processes millions of transactions daily.


Due to the Ukraine conflict, Western countries have imposed a series of sanctions on Russia, including cutting its ties to the SWIFT system.


This move has caused significant inconvenience for Russia in international financial transactions and prompted it to seek new solutions.


The idea of establishing a new international payment system proposed by Russia is a product of this context.


Different parties hold various viewpoints regarding the establishment of this new international payment system.


Some believe this proposal will impact the dollar's international standing, potentially threatening its supremacy.

If the BRICS countries can successfully reach this agreement, it could lead to seismic changes in the global economy, particularly regarding trade facilitation and financial independence.


However, other experts express skepticism, arguing that establishing a new payment system is no easy task.


First, there are numerous differences among BRICS countries regarding this plan.


Divergences in political systems, economic development levels, and other areas make it challenging to reach consensus on what should be included in the payment system, the payment methods to adopt, and how to manage it.


For example, China and India focus on different aspects of technical infrastructure and market demand, while Brazil and South Africa differ in economic scale and financial system maturity.

Secondly, the establishment of the new international payment system faces technical difficulties.


Currently, various payment systems are operational globally, each with different technical standards and protocols; thus, establishing a new payment system amidst existing ones presents significant challenges.


BRICS nations must coordinate their technical needs to achieve interoperability and compatibility of the system.


Additionally, international relations are complex; the presence of friendly and adversarial nations adds uncertainty to international cooperation.


In this context, whether a new international payment system established through the collaboration of multiple countries can be smoothly implemented remains uncertain.


Reactions in the market to the news of the BRICS countries establishing a new international payment system are mixed.


On one hand, some investors see this as a massive investment opportunity that may yield considerable returns in the future.


On the other hand, some worry that this change could trigger turmoil in the financial markets and bring greater risks.


The U.S. is closely monitoring the situation, as any threat to the dollar's supremacy would affect its advantages and interests in international financial markets.


The U.S. has stated that if BRICS countries successfully establish a new international payment system, more nations may join in the future, which would seriously threaten the dollar's position.


To protect the dollar's dominance, the U.S. might take all necessary measures to prevent BRICS countries from achieving their goals.


In addition to U.S. concerns, some countries that are "close friends" of the U.S. have also shown interest in this news.


These nations rely on U.S. protection and support, thus cannot afford to remain aloof on this issue.


For instance, Japan's strength in the financial sector is undeniable; it has long been entrenched in the financial industry and closely follows U.S. actions.


However, in response to the proposal from BRICS countries for a new payment system, Japan's reaction was unexpectedly open.


They expressed a willingness to engage in further research and discussion on the BRICS proposal.


This shift in attitude undoubtedly boosts the confidence and momentum of BRICS countries.


After all, support from Japan, a close ally of the U.S., further consolidates BRICS nations' position within the international financial system.


At this stage, the news of BRICS countries' plan has sparked extensive discussion in international financial markets.


Experts believe that if BRICS countries successfully establish a new international payment system, the global economy will undergo significant changes.


This will bring more trade facilitation to BRICS countries and aid their economic development.


However, at the same time, it will challenge the dollar's supremacy, potentially altering the global economic landscape.


Nonetheless, some experts question the feasibility of this plan.


They argue that although BRICS countries hold a substantial share of global economic output and population, the diverse economic sizes, development levels, and political systems will pose enormous challenges to implementing a new payment system.


Additionally, the varying maturity and standards of existing payment systems make the establishment of a new system even more complex.


Overall, the news of BRICS countries establishing a new international payment system has garnered significant attention and discussion.


While the feasibility of this plan requires further exploration, its potential impact on the global economy is undeniable.


U.S. concerns are understandable, as any threat to the dollar's dominance would result in considerable losses of advantages and interests for the U.S. in international financial markets.


The push by BRICS countries for a new international payment system makes the future of the global economy more uncertain.


As this plan progresses, the landscape of international financial markets will also change.


This change not only offers BRICS countries new choices and opportunities but also affects trade patterns and cooperation methods globally.


However, these new choices and opportunities come with risks and challenges.


In the unpredictable environment of international financial markets, ordinary people may face issues like exchange rate fluctuations and changes in international commodity prices, necessitating constant attention to market dynamics for appropriate decision-making and adjustments.


In summary, the push by BRICS countries for a new international payment system undoubtedly brings new opportunities and challenges to the global economy.


This change will affect the relationships and cooperation models between countries, directly impacting the daily lives and economic conditions of ordinary people.


The future of the international financial market will showcase a more complex and diverse landscape shaped by the competition between BRICS countries and the U.S. We shall see.

0 views0 comments

コメント

5つ星のうち0と評価されています。
まだ評価がありません

評価を追加

Best Value

Membership subscription

$2

2

Every month

Our economy is in serious trouble; your support will help us survive.

Valid for 12 months

​CosDream

News
bottom of page