China and India with Putin. Is the anti-dollar currency generated?

International observers are looking at The conflict between Russia and Ukraine: Not only for the material and economic effects, but also because the complete absence of the glimmer of negotiation indicates that we are in fact facing the beginning of the real geopolitical conflict, and this is the struggle between Uses And the China. Where China has thrown off the mask to buy, other than often vague statements Gas and oil that Moscow no longer sells to Western Europe.

Not only that: the Kremlin supports file creation New reserve currency International based on the currencies of the member states of the group Brix (Brazil, Russia, India, China and South Africa) and in an open post “against the dollar”. This was confirmed by the Russian President, Russian President Vladimir Putinin a letter sent to the participants in the five-nation economic forum, which opens today.

the document

“The question is being prepared,” reads the document, in which Putin emphasizes how BRICS members are working on reliable alternatives to the more prevalent mechanisms of international payments, such as The speed with which the Russian banking system is practically excluded from the beginning of the conflict in Ukraine. The president noted that the Russian system for transmitting Mir financial messages is “open to connecting banks” in the BRICS countries, with geography “actively expanding”.

Is it really possible to undermine the dollar?

However, the notion of this “reserve” currency – an instrument characterized by its stability and low volatility – is at odds with the truth of the facts: among the BRICS countries, the one with the least volatile is the one. yuan, which only recently entered the reserve currency basket of the International Monetary Fund (IMF), while other currencies of the group, in particular the Russian ruble, cannot be considered as such. As for global reserves, at the end of 2021, nearly 60% of global central bank reserves were denominated in US dollars, followed by a distance of the euro, Japanese yen, British pound and yuan.

However, we should not forget the growing size of the countries involved, where the conference Brix It can claim significant weight: the five countries account for 40% of the world’s population and 23% of global GDP.