The update consisted of certain factors of Ukraine, the ongoing Shangri La dialogue with reference to China and internal events in India. The Open house was very interesting and many interesting questions came up for discussion.
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An Update and Open House
4 responses to “An Update and Open House”
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Sir, there can be no multipolar world without de-dollarization. There’s really no reason for there to be only one reserve currency and transaction system. The US has got away with the abuse of its status simply by being the cleanest shirt in the laundry and they actively maintain this by de-stabilizing any potential alternatives. An example of the hubris of the american establishment:
As I understand it, the BRICS+ currency will *not* be a chinese dominated solution, instead it will be a commodities or gold-backed currency and an alternative to the IMF’s SDRs. As such, it’s mainly meant for maintaining and settling accounts between mutually trading countries. Now, this may or may not work but considering the financial trajectory the US is on and its abuse of the dollar financial system, some alternative will surely take hold in the not so distant future. Anyways, it will be interesting to see what the BRICS unveil on Aug 24th.
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I doubt if India can be part of a BRICS currency deal. To think that china won’t dominate it is being naive.
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Sir, agreed the prospects of a successful BRICS currency are to be seen. De-dollarization should not automatically be assumed to be yuanization, which of course would contradict any real move towards a multi-polar world. However, apparently, we have also signed up to the following building blocks of the BRICS financial institutions:
1. NDB (New Development Bank) : Similar to the World Bank, with equal capital share amongst the 5 leading BRICS nations (Brazil, India, China, Russia, South Africa)
2. CRA (Contingent Reserve Arrangement) : Similar to the IMF, with India, Russia, Brazil to each contribute $18B, China $41B, South Africa $5B).
3. BRICS cable (undersea optical fibre network) : Amongst other purposes, to serve as the backbone of a secure financial messaging system as a SWIFT alternative.
All these put together provide a decent chance of success for a BRICS currency if there are adequate checks & balances to prevent the dominance of one or alliance of nations.
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let us see. to think that China will not dominate BRICS is wishful.
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Gunners Shot 
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