The BRICS group wrapped up its two-day leaders’ summit in Rio de Janeiro on Monday. The summit’s final communique is a 16,000-word doorstop that covers numerous issues from economics to education.
The communique avoids any direct mention of the United States, and references to “unilateralism” and other coded criticism are also relatively scarce. Rather, the communique keeps the focus on the BRICS’ vision of the strengthening and reform of the global multilateral system ...
Category: Currency
When Ideology Meets Inflation, Argentina’s Milei Turns to China
The cry “Cambio! Cambio! Cambio!” rings out along Calle Florida, the bustling commercial artery of Buenos Aires. Dozens of unofficial money changers—many of them migrants from Chile, Venezuela, and Bolivia—line the street, calling out to passersby. They offer mercado azul, or the “blue market” exchange rates, trading ...
China Floats Ideas for “Multipolar” Currency System to Balance U.S. Dollar
China announced several new initiatives aimed at increasing global trade in the yuan and to hedge against the dominance of the U.S. dollar. Pan Gongsheng, the governor of the People’s Bank of China, proposed a future where the global financial system would rely on several currencies.
Indonesia, China Expand QRIS, Cross-Border Payment in Local Currency
Indonesia and China have renewed and expanded a key financial agreement to promote the use of local currency in bilateral transactions and cross-border payments QRIS. Bank Indonesia and the People's Bank of China signed the updated Memorandum of Understanding (MoU) at the Merdeka Palace in Jakarta ...
Offshore Yuan Hits Historic Low on U.S.-China Trade Tensions
China's offshore yuan fell to an all-time low against the U.S. dollar on Tuesday as trade tensions between the United States and China escalated after days of turmoil over tariffs. The offshore yuan, which is circulated outside mainland China and is ...
Trump Threatens 100% Tariff on BRICS Countries Over Currency Plans
President-elect Donald Trump on Sunday threatened to impose a 100 percent tariff on the BRICS group nations if they undercut the U.S. dollar. "We require a commitment... that they will neither create a new BRICS Currency, nor back any other Currency ...
Analysis from Cobus van Staden
IMF Chief Seeks More Details on BRICS Payments System Plans
The IMF wants to know more about a cross-border payments system discussed by the BRICS group of countries this week and aimed at boosting non-dollar transactions, the Fund's managing director said Thursday. The meeting of the BRICS -- meaning Brazil, Russia, ...
Kenya’s Rapidly Devaluing Currency Pushes Up Debt Servicing Costs, Particularly to China
The cost to repay Kenya's dollar-denominated loans is getting more expensive, literally by the day. The National Treasury reported that the plunging value of the shilling since the beginning of the year has increased the cost to service dollar-denominated loans by ...
Currencies, Old and New, Set to Top Agenda at Next Week’s BRICS Summit in Johannesburg
The idea of creating a brand new currency under the auspices of the BRICS countries is "ridiculous," according to the former Goldman Sachs economist who coined the acronym for the five countries. Jim O'Neil echoed the sentiments of a number of ...
Plunging Chinese Trade Data Rattles Global South Stocks and Currencies
From Chile to South Africa to the Philippines, stock markets across the developing world fell sharply on Tuesday after Chinese customs authorities released worse-than-expected trade data. Chinese exports plunged 14.5% in July compared to the same time last year, the ...
New Development Bank Wants to Finance More Projects Using Local Currencies Rather Than the U.S. Dollar
The New Development Bank (aka the "BRICS Bank") wants to reduce the use of the U.S. dollar when it finances projects in developing countries. The head of the Shanghai-based lender, Dilma Rousseff, told the bank's annual meeting this week that the ...
The Uphill Journey to a BRICS Currency
The South African government announced in May that discussions around setting up a common currency will be on the agenda of the BRICS summit in August. Calls for the bloc, made up of Brazil, Russia, India, China, and South Africa, to work together to boost non-dollar trade have ...
South Africa Urges Caution on BRICS Currency as Global Yuan Use Creeps Up
The BRICS group (Brazil, Russia, India, China, and South Africa) will discuss the feasibility of a joint currency at an upcoming summit in Johannesburg in August. Naledi Pandor, South Africa’s Minister of Foreign Affairs, acknowledged that scheduling the discussion was prompted by calls from member states to move away ...