Along w/ massive purchases in gold, brics will have the world currency status sooner or later
Brics doesn't even have a centralised currency of any form lol.
For it to have the world standard currency, the bunch of systemic competitors that make up brics (almost all of which have at least some major cause of friction with at least one of member) to:
agree on a name, design and production strategy that every single member is happy with
have a centralised bank somewhere that is controlled by some (presumably inter-state) entity
have all members adopt that currency as their primary currency, phasing out their existing state controlled ones
have the currency be more stable and commonly accepted than USD
Only then can it even really begin to start being a world currency
Frankly, I don't think there's nearly enough cooperation within the group to even start making steps toward a common currency for decades
Yeah zero chance this happens in our lifetimes. They don't have enough in common to pull something like this off. It took Europe half a century and they are all next door neighbors with roughly the same values.
I'll take that bet; you have to pay in the new currency if I'm right; if you're right, one of us is dead, and it doesn't matter.
Why would they need to fully replace their local currency to trade with another currency?
Is this something all countries that trade with dollars have done?
BRICS is not about having a centralized hegemonic currency to replace the dollar, but about negotiating with the countries own currencies and skipping the dollar. This news is just that.
Also the BRICS bank exists.
They have a development bank, but that's fundamentally very different to a central bank (more like the IMF and less ECB).
The comment I was replying too was about a centralised brics currency, though.
I'm still betting on the Euro overtaking the dollar - the EU is much less unpredictable than America.
The world has been divesting from the Euro ever since the sovereign debt crisis in 08 and 09. A lack of unified monetary policy is a large factor. However, Europe’s has only accelerated the trend by keeping interest rates low compared to the strong action the Federal Reserve took when inflation became an issue. Europe is now hit with a double whammy of high inflation and low growth. Europes economy is fundamentally weak. Its population is aging towards having a majority of retirees. Retirees don’t spend money on stuff like people in their 20’s 30’s and 40’s. Simultaneously they are dependent upon foreign sources for energy.
The EU simply can’t raise interest rates or they will kill what little growth they have.
Unfortunately the US has a lot better access to labor, better demographics, and more natural resources and better river networks, etc. to exploit, not to mention extremely good natural defense lines. No matter how well run Europe is in comparison, the US will always have a massive head start.
I agree but I don't think the US would like or even let this happen.
Wow, you have it figured out. How much money have you converted into any of the BRICS currencies? It sounds like you would have quite the long term investment when those currencies appreciate due to increased demand.
All of the brics countries right now can keep thier own world currency we need more local currencies im tired of this drive to welcome globalism from known fascist countries.
Along w/ massive purchases in gold, brics will have the world currency status sooner or later
Brics doesn't even have a centralised currency of any form lol.
For it to have the world standard currency, the bunch of systemic competitors that make up brics (almost all of which have at least some major cause of friction with at least one of member) to:
Only then can it even really begin to start being a world currency
Frankly, I don't think there's nearly enough cooperation within the group to even start making steps toward a common currency for decades
Yeah zero chance this happens in our lifetimes. They don't have enough in common to pull something like this off. It took Europe half a century and they are all next door neighbors with roughly the same values.
I'll take that bet; you have to pay in the new currency if I'm right; if you're right, one of us is dead, and it doesn't matter.
Why would they need to fully replace their local currency to trade with another currency?
Is this something all countries that trade with dollars have done?
BRICS is not about having a centralized hegemonic currency to replace the dollar, but about negotiating with the countries own currencies and skipping the dollar. This news is just that.
Also the BRICS bank exists.
They have a development bank, but that's fundamentally very different to a central bank (more like the IMF and less ECB).
The comment I was replying too was about a centralised brics currency, though.
I'm still betting on the Euro overtaking the dollar - the EU is much less unpredictable than America.
The world has been divesting from the Euro ever since the sovereign debt crisis in 08 and 09. A lack of unified monetary policy is a large factor. However, Europe’s has only accelerated the trend by keeping interest rates low compared to the strong action the Federal Reserve took when inflation became an issue. Europe is now hit with a double whammy of high inflation and low growth. Europes economy is fundamentally weak. Its population is aging towards having a majority of retirees. Retirees don’t spend money on stuff like people in their 20’s 30’s and 40’s. Simultaneously they are dependent upon foreign sources for energy.
The EU simply can’t raise interest rates or they will kill what little growth they have.
Unfortunately the US has a lot better access to labor, better demographics, and more natural resources and better river networks, etc. to exploit, not to mention extremely good natural defense lines. No matter how well run Europe is in comparison, the US will always have a massive head start.
I agree but I don't think the US would like or even let this happen.
Wow, you have it figured out. How much money have you converted into any of the BRICS currencies? It sounds like you would have quite the long term investment when those currencies appreciate due to increased demand.
Gold only recently climbed back to its 2013 valuation. It’s a dogshit investment.
All of the brics countries right now can keep thier own world currency we need more local currencies im tired of this drive to welcome globalism from known fascist countries.