Famous Entrepreneur Analyses BRICS Nations’ Shift from Dollars to Rupees and Its Global Economic Ramifications
Famous entrepreneur and Chief Executive Officer (CEO) of Manoka Island Trade and Krypto Waves, Mit Phoenix has unraveled the global economic implications of the BRICS nations’ recent shift from the United States Dollars to Indian Rupees and other members nations’ currency.
Credible News Nigeria reports that, In a bold and unprecedented move, the BRICS nations have embarked on a path that could potentially reshape the world financial order.
Recall that India recently acquired one billion barrels of oil with its national currency (rupees), setting in motion a significant shift away from the dominance of the U.S. dollar in global transactions.
Speaking to Credible New Nigeria Sunday on the development, Phoenix said: “This strategic maneuver holds far-reaching implications for global economics, the African continent, the U.S. economy, and the stability of international currencies.”
According to him, the BRICS nations’ alliance, comprising Brazil, Russia, India, China, and South Africa, represents approximately 40% of the world’s population and a substantial portion of its economic output.
He pointed out that by BRICS nations trading commodities and conducting transactions among themselves using their respective national currencies instead of the U.S. dollar, has challenge the dollar’s historical supremacy as the global reserve currency.
Phoenix who is a global economic researcher and crypto recommendation guru said: “This transition could lead to a diversification of currency reserves held by countries around the world, thereby weakening the dollar’s stranglehold on the global financial system.
The impacts on Africa, Phoenix posited would be a mixed bag. He said: “On one hand, African nations could benefit from reduced exchange rate risks and transaction costs, as they wouldn’t have to rely on intermediaries to convert their currencies into dollars. On the other hand, African economies heavily dependent on commodities might face challenges if BRICS nations prioritize trading among themselves, potentially affecting the demand and prices of those resources.”
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He continues: “Should 40% of the world population abandon the dollar, the U.S. economy would likely experience significant consequences. A decreased demand for the dollar could lead to a depreciation, impacting exports and potentially triggering inflation. However, the extent of these effects would depend on the U.S. government’s response and its ability to manage economic policy during this transition.
“The entry of six more countries into the BRICS nations’ alliance in 2024 would further amplify the potential impacts of this shift. The move could potentially strengthen the alliance’s influence and expand the use of national currencies in global trade. However, it might also intensify tensions between those promoting the new order and those reluctant to let go of the dollar-based system.
“While the fear of hyperinflation in the U.S. due to the repatriation of dollars from foreign central banks is a legitimate concern, the actual outcome would depend on the actions of all parties involved. Central banks might choose to manage the return of dollars in a gradual and controlled manner to mitigate such risks.
“The transition away from the dollar-centric world financial order is not without its challenges. Currency wars, potential geopolitical conflicts, and the adaptability of economies to the new system all pose uncertainties.
“It remains to be seen whether the shift will lead to a multipolar currency landscape or a chaotic currency war that destabilizes the global economy.”
In conclusion, Phoenix averred that the recent moves by the BRICS nations to trade amongst themselves using their national currencies mark a pivotal moment in the evolution of the world financial system.
“While the implications are profound and complex, the extent of their impact will depend on the actions taken by all parties involved – the BRICS nations, other countries, and the global financial institutions that shape the modern economic landscape,” he noted
You can read more of such stories at Credible News
By DAYO ADESULU
