INDIA , Russia, Brazil, China, and South Africa may soon consider creating their own currency for BRICS : FM Lavrov

[Hecig]

This is not going to work.

If you create a common currency between all 5, you either adopting the same common currency (like EU and Euro) or you have to be able to freely change into that currency from your local currency like a token.

Would China want to bend that far backward to accommodate the other 4? Which have less than half the economic productivities than China? So do you supposed China just going to ignore their own advantage and go equal between BRICS on its currency??

Or how about each BRICS country hold their own currency and convert that to token? Then how does it work when Yuan and Rouble are the most regulated currencies on earth?

It won't work either way, you may as well ask BRICS to adopt Yuan as Official currency, but then what happened to USD will happen to RMB in a smaller scale, it will devalue RMB.

The mechanism for this common tradable currency / token can be worked out if there is political will or Economic need.

The real question to be asked is if there is indeed any intent or need.

The BRICS currency reserve will just be the acceptance of the Yuan for trade.

Nope, in which case we would rather have the USD.

 

[Muhammed45]

China won't give up Yuan, it won't happen.

India has the required manpower, and Russia has the needed industrial capacity.

China's GDP is more than 2.5 times of the other four BRICS combined: almost $18 trillion compared with Brazil ($1.6 trillion), Russia ($1.8 trillion), India ($3.2 trillion) and South Africa ($400 billion). China can stick to her own and have full control of her currency. will US give up US dollars to creat a single curreny with Canada and Mexico?

They won't create USA of Asia. You owe that so called GDP to USA's market. Don't you?

The BRICS currency reserve will just be the acceptance of the Yuan for trade.

Impossible with China's non existent ideological bones. USA will simply digest you and it will be the same bullshit cycle.

 

[beijingwalker]

They won't create USA of Asia. You owe that so called GDP to USA's market. Don't you?

No, China's biggest trading partner is ASEAN and China trades with every country, we don't just rely on one or two markets.

China Is the Top Trading Partner to More Than 120 Countries

www.wilsoncenter.org

 

[etylo]

You owe that so called GDP to USA's market. Don't you?

You dont know what the hick you are talking about. US only makes up 17% of Chinese total exports. China doesnt owe US a shit in investments too.

 

[jhungary]

The mechanism for this common tradable currency / token can be worked out if there is political will or Economic need.

The real question to be asked is if there is indeed any intent or need.



Nope, in which case we would rather have the USD.

I don't see how this is going to work out.

Russia and China both have legislation that the government can manipulate their currency, and they do from time to time, with Russia just did that at the onset of Ukrainian War and China last devaluation in 2019. Which mean both cannot freely trade with other currency

I mean, if you are India, would you trade the Token value that would be affected by the governmental policy of the two country? Which China itself would have dominated if such token exist in the first place. It will be like Trading Rupee with USD when US government determine the value of US dollar instead of a Market rate and you are forced to do so because the entire world is using USD.

I don't think it's feasible, especially not a single country in that group have the same or even similar economic might China process.

 

[beijingwalker]

Covid is only a small blimp. China just doesn't have what it takes to be great anymore

So what it takes? been there , done that India mind to offer some insight?

 

[HttpError]

Adopt Bitcoin

 

[Hecig]

I don't see how this is going to work out.

Russia and China both have legislation that the government can manipulate their currency, and they do from time to time, with Russia just did that at the onset of Ukrainian War and China last devaluation in 2019. Which mean both cannot freely trade with other currency

I mean, if you are India, would you trade the Token value that would be affected by the governmental policy of the two country? Which China itself would have dominated if such token exist in the first place. It will be like Trading Rupee with USD when US government determine the value of US dollar instead of a Market rate and you are forced to do so because the entire world is using USD.

I don't think it's feasible, especially not a single country in that group have the same or even similar economic might China process.

For now its not feasible for the reason you mention.

China is fundamentally a dishonest nation (the govt.). So to peg something as importance as currency which is the very symbol of Trust is not practical at all for now.

To make it possible, there first needs to have an institution with appropriate checks and balance and power that will determine the worth of the new tradable currency to each countries currency value.

China is eager to win this self declared "race" and they are willing to bend all rules to win it.

New Development Bank can do this role if there is political will and Need. But for now, its charter is defined and Infra project oriented.

It has nothing to do with chinas economic might.

 

[jhungary]

To make it possible, there first needs to have an institution with appropriate checks and balance and power that will determine the worth of the new tradable currency to each countries currency value.

That is the core issue IMO.

The demand only flow on one side. from China, again, if you put the rest of BRICS together, it will still be dominated by China, so essentially. what you are saying is that China has to give up that lead and advantage voluntarily in order for such organisation to be established.

Set aside all the economic impact that would bring (ie depreciation of Yuan and increase Yuan demand, high interest rate and etc), would China want to do it just for the sake of BRICS itself is questionable.

 

[beijingwalker]

China is fundamentally a dishonest nation (the govt.). So to peg something as importance as currency which is the very symbol of Trust is not practical at all for now.

LOL

 

[Abdul Rehman Majeed]

Because china does not have the global alliance that the US has.

US real strength is its international alliance. From Europe to Middle East to South Africa ato Australia.

China's friends are North Korea and pakistan and maybe Russia.

If china dreams of being dominant, it has no choice but to build alliances. Even with the unlikeliest of nations. Like solomon islands or Djibouti.

China's future is in G2.

US and China together will rule the 21st century.

Failed states like Russia, India, Brazil and South Africa are not need.

If need be they could include KSA to make it G3.

 

[Hecig]

That is the core issue IMO.

The demand only flow on one side. from China, again, if you put the rest of BRICS together, it will still be dominated by China, so essentially. what you are saying is that China has to give up that lead and advantage voluntarily in order for such organisation to be established.

Set aside all the economic impact that would bring (ie depreciation of Yuan and increase Yuan demand, high interest rate and etc), would China want to do it just for the sake of BRICS itself is questionable.

Not true. The demand can and will vary depending on the number of nations that will join this new currency regime.

As this idea gains "currency" it will only lead to more nations joining this grouping, not less.

The currency value w.r.t individual currency can be based on fixed parameters like size of economy, consumption, import-export etc. and can be dynamic in Nature. Just like a freely traded currency. Only it will be institutionally controlled.

China will have to take this path if it wants a more "global" role. The days of "empires" are gone forever.

LOL
View attachment 913492

Its true though, isn't it?

There are no institutional checks and balances in china.

China's future is in G2.

US and China together will rule the 21st century.

Failed states like Russia, India, Brazil and South Africa are not need.

If need be they could include KSA to make it G3.

lol.

 

[jhungary]

Not true. The demand can and will vary depending on the number of nations that will join this new currency regime.

As this idea gains "currency" it will only lead to more nations joining this grouping, not less.

The currency value w.r.t individual currency can be based on fixed parameters like size of economy, consumption, import-export etc. and can be dynamic in Nature. Just like a freely traded currency. Only it will be institutionally controlled.

China will have to take this path if it wants a more "global" role. The days of "empires" are gone forever.

How do you guarantee that currency token then? You either allow the dominant nation in this group (in this case China) to put in charge, or you have everyone accept the same standard, which mean China would have lose the most because they would have to give up their advantage on monetary policy??

Whether it is an actual currency or not you would need to have some sort of backing to make it official, I mean if there are no way you can change Bitcoin to actual currency, Bitcoin essentially would be valueless and pointless.

It doesn't matter who join this currency basket or how many nations join this basket, it would still be the same. Because China would still dominate whoever joined in, unless of course you included EU and USA in the currency basket....Which kind of defeat the point to have this token to begin with.

On the other hand, nobody would want a currency that are institutionally controlled by anyone. I mean control means restriction, which mean someone up there defining those policy would have absolute power over said currency, you cannot be freely tradable and being in control at the same time....

 

[Hecig]

How do you guarantee that currency token then? You either allow the dominant nation in this group (in this case China) to put in charge, or you have everyone accept the same standard, which mean China would have lose the most because they would have to give up their advantage on monetary policy??

Whether it is an actual currency or not you would need to have some sort of backing to make it official, I mean if there are no way you can change Bitcoin to actual currency, Bitcoin essentially would be valueless and pointless.

It doesn't matter who join this currency basket or how many nations join this basket, it would still be the same. Because China would still dominate whoever joined in, unless of course you included EU and USA in the currency basket....Which kind of defeat the point to have this token to begin with.

On the other hand, nobody would want a currency that are institutionally controlled by anyone. I mean control means restriction, which mean someone up there defining those policy would have absolute power over said currency, you cannot be freely tradable and being in control at the same time....

What advantage china will have is for china to decide.

The backing for the currency will the be economies of all the nations that trade in it. The price to be determined by the independent organization that composes of all member nation with adequate power to conduct Audit and publish results.

Why would any nation dominate since all nations will have equal vote. (1 nation 1 vote).

The institution that controls it would be a global independent body.

 

[jhungary]

What advantage china will have is for china to decide.

The backing for the currency will the be economies of all the nations that trade in it. The price to be determined by the independent organization that composes of all member nation with adequate power to conduct Audit and publish results.

Why would any nation dominate since all nations will have equal vote. (1 nation 1 vote).

The institution that controls it would be a global independent body.

But you are asking the Chinese to back such currency and essentially give the other country in BRICS or whoever is going to join that basket an inroad to dictate Chinese Monetary Policy........

Again, the economic might of China is probably multiple time of rest of BRICS put together, hence why China would accept a 1 country 1 vote system and allow country like South Africa to dictate term wrt Monetary Policy China is going to be involved with?

I don't know if you aware this is a very, VERY big ask for China to give up their own advantage on policy making to get into a 1 country 1 vote system where everyone have the same. I mean it would work if you were South Africa or India or Brazil or Russia because you can dictate term on the token currency which is going to be pegged to individual currencies. But this is everything to lose for China to basically see "eye-to-eye" on their monetary policy for the rest of BRICS.

Essentially it's everything to play for the rest of BRICS, and nothing is being bring to the table for China, and you are expecting the Chinese would be okay with this?? It's like you are asking the US to drop the world dominance and accept a 1 nation 1 vote system on SDR Basket.....