What we would like to note in the hot footsteps of the yet-to-be-concluded BRICS meeting in South Africa
1) The fact that as many as six more countries have been admitted to BRICS is nice. But it is even nicer that an agreement has been reached to settle intra-BRICS payments in national currencies.
And Putin, when referring to this agreement, said that settlements within the BRICS will not be made in dollars or euros (he also mentioned yen), but in OTHER REFERENCE currencies.
This wording is extremely important, because it means that the BRICS considers the national currencies in which they will be settled as REFERENCE currencies. This is a tectonic shift in the global financial system (but so far hardly understood by anyone).
This means that the accumulation of reserves by the central banks of the BRICS countries will gradually take place in these now RESERVABLE currencies. And these are, at the very least, the yuan and the ruble. India has so far been wary of external circulation of its rupee. The other currencies are not pulling that status yet.
2) Also at the press conference Lavrov and then Putin noted the work done on the creation of a new BRICS payment system. But there are no details yet. Money likes silence. And again a new possible BRICS currency for foreign trade settlements was mentioned.
And that is why the Western media react so nervously to any news from South Africa regarding the BRICS payment system, which could eventually force most dollars back to the US, which would choke its financial system.
Hasn’t Russia and China been building up their gold reserves for the past 10 years to support the initial issuance of this new currency?
And in this case, our and China’s participation in the issuance of the new (digital?) currency will be major and almost equal (as well as our gold reserves).
We are waiting for further explanations and hope for the success of the new BRICS financial system already in 2024.
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