BRICS is collective economic block comprising of Brazil, Russia, India, China, South Africa and grouping of world emerging economies. The block accounts for Gross Domestic Product of approximately $25 Trillion and account for 40% of the world’s population with 3.2 billion people. As visualized two decades earlier the grouping of emerging economies are now competing with established global order dominated by dollar based monetary system. The group has projected itself as framework of new opportunities with BRICS + attracting interest from Algeria, Argentina, Cambodia, Egypt, Ethiopia, Fiji, Indonesia, Iran, Kazakhstan, Senegal, Uzbekistan, Malaysia and Thailand.
In the aim to establish an alternative system to counterbalance the disproportionate power of the Anglo Saxon dominated western world in the monetary system, Russian President Vladimir Putin stated the block is currently working on setting up a new global reserve currency. After the west excluded Russia from the Society for Worldwide Interbank Financial Telecommunications (SWIFT) international payment messaging system, The Kremlin is working on economic realignment with BRICS to create developing reliable alternative mechanisms for international payments. The group with 35% of world foreign exchange reserves is actively working to use national currencies of member countries for settlement of international trade, integration of payment systems and cards, build parallel financial messaging system and creation of independent BRICS rating agency.
The foreign exchange reserves of India is depleting rapidly and as of week ending September 20 2022, the reserves fell to $532.66 billion from the high of $642.53 billion in September 2021. To stem the arrest in dwindling foreign exchange reserves the Reserve Bank of India announced “International Commerce Settlement in Indian Rupees (INR),” to permit cross-border trade in Indian currency. In accordance with this agreement, the RBI establishes the regulations that permit Indian exports and imports to be priced in INR and denominated using market-decided bilateral exchange rates. India’s RuPay card and the Unified Payment Interface (UPI) platform – the Indian indigenous system of electronic payment developed by NPCI International Payments Limited (NIPL) is real time payment solution is gaining international acceptance rapidly due to the zero-transaction fee and has presented it as alternative to SWIFT which charges around 2-5%. These moves also presents an opportunity for RBI to position Rupee as reserve currency as more nations are willing to settle payments, conduct business, remittances and trade in rupees.
India modest steps in these directions to integrate itself with the BRICS block and position itself as future reserve currency has not gone well with the lawmakers in G7 countries. The Central Banks including Federal Reserve around the globe are hiking interest rates. This had led to stronger exchange rate favouring US dollar. The US dollar is considered safe – haven currency globally and investors flock to buy dollar – denominated assets as interest rates rises. The strong dollar has led to emerging economies across the world are facing huge devaluation of their currencies with seriously disrupting international trade and risking wave of debt defaults across the world. The G7 nations have also announced $600 billion plan in funding infrastructure projects in developing countries like India to position itself as counter to China’s Belt and Road Initiative.
Collectively the United States and the grouping of world advanced economies with 44% of GDP and 10% of world population would like to stem the growth of emerging economies by using the soft powers to create disturbance in member BRICS countries by supporting disgruntled opposition, peddling fake narratives and stoke tensions near the borders with arming rival countries. Both Russia and China announced no limits partnership during the winter Olympics and the west is aiding Ukraine with arms to fight protracted long drawn battle with Russia. United States Speaker of the House Nancy Pelosi visited Taiwan with declaring America stands with democratic partner Taiwan thus diluting the ‘One China Policy’ and instigating crisis in South China Sea. Armed with weapon supplies from America recently Taiwan’s Défense Minister warned that Chinese fighter jets or drone intruding into Taiwan territorial airspace would be regarded as a ‘first strike’ and the island nation is stocking up essential supplies for possible blockade or attack by China. The Biden Administration has announced sweeping new US export controls aim to cut China off from advanced semiconductors used for artificial intelligence, supercomputers, and weapons, as well as the tools needed to make them. The Anti Hijab protest in Iran is suspected to be backed by foreign governments.
The United States have decided for $450 million F-16 upgrade for Pakistan, following the visit of Chief of the Army Staff Gen Qamar Javed Bajwa and the General has been awarded enhanced honor cordon on his visit to Pentagon. Talks are on to resume and provide aid and humanitarian relief to Pakistan, in addition for possible removing the terrorist nation from FATF grey list by October. The American Ambassador in Islamabad Donald Blome visited the Pakistan Occupied Jammu & Kashmir and described it as Azad Jammu & Kashmir. Adding fuel to fire German Foreign Minister Annalena Baerbock feels that Berlin had role role and responsibility with regard to the tension over Kashmir and both India & Pakistan to engage United Nations for peaceful solution to the dispute. Of late the British Home Secretary Suella Braverman has stated she has concern with the Free Trade Agreement between United Kingdom & India for most migrants from India overstaying. In QUAD meeting held last month the Défense minister of Japan, America and Australia met in Hawai. Recently the European Union has withdrawn preferential tariffs for several Indian imports s, including textiles and apparel, chemicals, leather works, gems and jewellery products and railway equipment’s. All these factors state that the west is working clandestinely to ensure that India growing influence in the world is curtailed and punish it for pursuing the policy of strategic autonomy by ignoring pleas from the west to stop crude oil imports from Russia. Meanwhile the time involved to clear visa to Indians is 800 days, whereas the processing time for Chinese is two days. Surprisingly World Health Organization suspended license of Indian based pharmaceutical company charging it with exporting substandard products to Gambia which resulted in death of Children.
The Ultra-Leftist elements in the Biden Administration are now carrying targeted attacks on Indian communities by passing anti-CAA resolutions, targeting Hindu Americans candidates, bull dozer in parade issue and now Teaneck resolution is by same handful of individuals under different organizations. IAMC, CAIR, Peter Friedrich, Hindus for Human Rights and their many offshoots supported by Deep State. Indian Government pursuing Make in India by making India self-reliant and placing national sovereign Interest over the interest of Oil, Pharma, Arms, Big Tech & Wall street have not gone well with vested interest in America. George Soros Open Society Foundations has on record committed $1 Billion to displace the nationalist government in India. The Urban Naxals, hacktivist groups on the pay rolls of OSF want to remove Narendra Modi by inciting planned protest and spread anarchy. According to Mumbai based Chartered Accountant Sumeet Mehta the Opposition in this country are celebrating the collision of Vande Bharat trains and enjoying destruction of national property and undermining the indigenous development done by the country. All this shows there is sinister plan to remove Narendra Modi and to ensure his replacement comply with the demands of the government in Washington.
According to Senior Policy Analyst Dr.Ankit Shah the days of US Dollar as World Reserve Currency are numbered. With Russia declaring Moscow Gold standard on 16th August 2022 and trials for BRICS currency slated to happen in October 2023, He states that accelerated end of dollar would start by the end of December 2023. He has ominous predictions for dollar and states that Gold will rise from 2025 after Moscow Gold Standard exposes the nefarious designs of JP Morgan Chase and LBMA of keeping the price of Gold Artificially low. He stated that BRICS currency will be basket of all participant currencies, The Gold will emerge as the gap adjustment factor for trade. He also stated De Dollarization will result in 60 percent contraction in US economy with salary levels going down with corresponding levels. The Americans will experience 35% cut in their entitlements and social benefits and 25% cut in Défense budgets. Dr. Shah also questions the endless US Dollar printing capacity and if the reserve currency usage drops from 59% to 16% which is actual American share in world trade. The central bank of Israel readjusted its reserve holdings. It added Yuan to its portfolio, reducing its exposure to US dollars, euros, and the British pound. In short, he added a new financial architecture will be established and US Dollar will be embedded in the BRICS currency framework in the days to come.
This post was first published in Trunicle