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Has the Dollar Struck the BRICS Iceberg?

• https://www.zerohedge.com, by Tyler Durden

The BRICS countries, especially those in the global South, are leading the charge to depart from the decades-long dominance of the American currency. China and Japan's central bank shares show the most significant rise in central banks. Interestingly, the Euro is just slightly behind in losing a share in the world currency market.

If BRICS stops using the USD, there will likely be a financial disaster in the United States, with hyperinflation wreaking havoc across all sectors in the US. However, losing the dollar as the medium of exchange worldwide is not the most significant danger for the American hegemony. Collaboration and stronger ties between the BRICS and emerging nations are essential. Xn Iraki, an associate professor in the Faculty of Business and Management Sciences of the University of Nairobi, offered this via China Daily: 

"BRICS is at a watershed in terms of global economic organisations, with less-developed countries now having access to technology from more advanced ones and having an opportunity to diversify their exports and gain access to new sources of funding."

The professor suggested member countries strengthen intergroup collaboration in many fields, including cultural exchanges, science and technology. Once this level of partnership begins, the so-called Global South will be much more influential on the financial and geopolitical scales. What the experts are suggesting is not just a business shift but a literal change of identity for poorer nations that wielded almost no power or influence. This is the great appeal for joining the BRICS; the US and its allies have no comparable leverage point.

The BRICS account for 37% of the world's GDP, while the G7 only squeaked out 30%. With the UAE, Saudi Arabia, and Iran joining the group, oil production on Earth will be firmly in the hands of BRICS members. US government data shows BRICS' share of global oil production blossoming from 19% to 41% after the recent expansion.


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