In an interview with RIA Novosti last week, with Russia’s executive director at the IMF, Alexey Mozhin, he warned of the risks of the dollar and the importance of a safe alternative for countries: “Ultimately, the system rests on the confidence that , in dollars, the assets are safe. According to my estimates, if US debt continues to rise – which is now the base case scenario – then, of course, confidence in the safety of dollar assets will decline. Once this trust is lost, chaos will ensue in the global economy.” US net debt is growing at a rate of US$2.5 trillion per year and the race for dedollarization is increasing.
“Is there a possibility of a collapse of the global monetary system? It seems to me that such a possibility exists,” said Mozhin. The alternative to the dollar is under discussion in Brics. “To begin with, it is possible to create a BRICS accounting unit, built on a basket of currencies from the five member countries [fundadores]: 40% Chinese yuan, 25% Indian rupee, 15% Russian ruble, 15% Brazilian real and 5% South African rand. A kind of ‘Brics SDR’”, emphasized Mozhin.
“It is also possible to make daily quotes for the main commodities: oil, grains, gold, other metals, wood and much more. Furthermore, it will be possible to recalculate and convert mutual trade within BRICS into it. This is a very good project”, he added.
“In the event of the collapse of the dollar and the international monetary system, it will be necessary to transform the Brics accounting unit into a real currency supported by goods traded on the stock exchange”, concluded the Russian.
India and Nigeria move towards dedollarization
India and Nigeria are preparing to sign an agreement to conduct trade in local currencies. The 2 countries will also establish a unified payment interface, according to a statement from the Indian Ministry of Commerce, published by Sputnik. Bilateral trade totaled US$11.8 billion in 2022–2023, making Nigeria India’s second largest trading partner in Africa.
Read too:
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The Commercial Association of Rio (ACRJ) will receive, this Friday, at 12 pm, Mayor Eduardo Paes for a meeting with businesspeople and for the lecture “Business Opportunities in Rio de Janeiro” *** Auddas advised Helisul Aviação from Curitiba in the acquisition of Chilean Ecocopter for US$36 million. Helisul informs that it has become the largest operator of air services with helicopters in Latin America *** The Costura Futuro group from the social project Ateliê Mundo Novo forms this Thursday, at Shopping Jardim Guadalupe *** Engenho Massangana, linked to the Joaquim Foundation Nabuco (Fundaj), will host the exhibition So that the statues do not die, starting next Saturday, at the opening of National Museum Week *** Veiga de Almeida University (UVA) will hold this Saturday a free joint effort to help the population prepare the Income Tax declaration, on the Tijuca campus (Ibituruna street), from 9am to 1pm.
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