Russia seeks to use the Brix Group to bypass the dollar in international trade, but these ambitions, according to Bloomberg, have every chance to remain fantasy. At Brix's annual summit, President Vladimir Putin declared his intention to reduce the role of a dollar in the world economy. However, the organizers of the event advised the participants to have dollars or euros, as Visa's non -Russian cards would not work.
The authors of the article point out that this is an eloquent example of difficulties faced by countries trying to abandon the currency that has dominated the world financial system since the Second World War. Despite the fact that Brix countries represent a large part of the world economy, there is a global financial infrastructure focused on a dollar, it will continue to do it dominate at least several decades.
Russia and China are trying to promote the idea of deduumarization, but there are no real mechanisms for this. According to Bloomberg economists, Brix countries have three dollar circumstances in cross -border payments: to trade in local currencies, to use new digital currencies or Chinese Yuan. However, all three options are doubtful.
Local currency payments are usually expensive due to low liquidity, and digital currencies are too unstable. Yuan, which China seeks to internationalize, also faces problems - Beijing does not want to allow free fluctuations in his course. In addition, the question remains whether China wants to pump an unlimited number of yuan outside its economy in the economic crisis.
Bloomberg authors emphasize that the US in crisis is helping their allies, providing them with dollars to support the financial system. Instead, China, even in Russia, cannot provide enough yuan. This topic was not even raised at the Brix summit, which indicates the limited realization of devolarization today.
