The American bank JP Morgan believes that the Chinese yuan could take over the crown of hegemony in the financial markets from the dollar. In 2023, the currency of the Middle Kingdom has continued to gain importance. This situation benefits the BRICS, of which China is one of the most influential members.
Iran has recently called on the BRICS to establish a common currency to replace the dollar. This challenge to the dollar by Iran, but also increasingly by Saudi Arabia, explains why the Americans want to put an end to the Iranian regime. The end of the petrodollar would no longer allow the United States to finance its monstrous deficits through other countries.
While Chinese growth is faltering, Beijing is not hesitating to open the floodgates of fiscal and monetary stimulus in order to try to boost its battered economy. With credit easing, early distribution of local borrowing quotas, and massive issuance of government bonds, the Middle Kingdom is multiplying unprecedented expansionary measures. Objective: to regain vigorous growth by 2024.
Is the trend towards de-dollarization exaggerated? Is the petrodollar system coming to an end? Will the BRICS go all the way?
The BRICS have officially decided to leave the dollar. In the meantime, the question of the currency's use in settling international transactions seems to be a point of contention between the member countries. Here's what it's all about.
There's a growing chorus insinuating that the American hegemon is threatened by the BRICS. But what's really going on?