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BRICS nations stop taking US dollar loans: So what now?

BRICS nations stop taking US dollar loans: So what now?

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TL;DR

  • Russia and China, part of BRICS, plan to ditch the US dollar for loans, eyeing the Chinese Yuan instead.
  • The BRICS nations aim to reduce dependency on the US dollar and boost local currencies.
  • Russia awaits China’s approval to start accepting loans in Yuan.

BRICS’ big players, Russia and China, are seriously considering giving the US dollar the cold shoulder when it comes to loans. Instead, they’re eyeing the Chinese Yuan as the new go-to. Russia’s Finance Minister, Anton Siluanov, is basically saying, “Hey, let’s chat with China about maybe switching team US dollar for team Yuan.”

This isn’t just a two-nation tango, though. The whole BRICS squad – that’s Brazil, Russia, India, China, South Africa, Iran, Ethiopia, UAE, and Egypt – is in on this game plan. They’re tired of the US dollar calling the shots and are rallying to get other countries on board with their plan to big up their own currencies instead.

Now Russia’s all set to start accepting loans in Yuan, just hanging on for China to give them the green light. If China says yes, it’s going to be a game-changer. I’m talking billions of dollars that won’t be making their usual rounds on the global financial stage. BRICS’s goal? To make the US dollar sweat by pumping up the Yuan and other local currencies.

But, and it’s a big BUT, nothing’s set in stone yet. Siluanov’s been like, “We’ve been hashing this out with China for ages, but no dice so far.” They even had a big pow-wow about it last year, but still no go.

The bigger picture here is that the BRICS dream to kick their US dollar habit for good. If they keep at it, the dollar’s going to feel the burn in the global markets. But the bloc has also flirting with the idea of creating their very own currency, kind of like the Euro. Siluanov’s thinking it could be a neat alternative to the US dollar, a way for BRICS countries to price goods and set benchmarks without having to rely on the dollar or the whims of its “issuing center.”

Of course it’s all just talk at this point. The BRICS bunch is planning to really dive into this at their next summit in October. They’re hoping to come up with some solid plans that could shake up the current financial status quo. If they get their way and the world starts turning its back on the US dollar, it’s the US economy that’s going to feel the sting the most. Imagine less demand for the dollar globally. It’s gonna be a freefall for the US’s financial dominance.

Disclaimer: The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Jai Hamid

Jai Hamid is a passionate writer with a keen interest in blockchain technology, the global economy, and literature. She dedicates most of her time to exploring the transformative potential of crypto and the dynamics of worldwide economic trends.

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