The relationship between developing nations and the US dollar has been turbulent in recent decades, with the decision in 1944 to adopt the dollar as the global trade currency having a lasting impact. Now, with the BRICS bloc musing at a new common currency and countries like Russia and China pushing for de-dollarisation, Trump has taken to social media to threaten against any such moves. While India has denied any plans to move away from the dollar, Trump's remarks have raised eyebrows and added to the already tense relationship between the US and BRICS nations.
The BRICS and the US Dollar: A Shifting Currency Landscape
Background
The establishment of the US dollar as the global reserve currency in 1944 marked a significant turning point in international finance. However, in recent decades, this dominance has faced increasing challenges, particularly from emerging economies.
The BRICS (Brazil, Russia, India, China, and South Africa) has emerged as a powerful grouping of developing nations that have expressed concerns about the volatility and overreliance on the US dollar. These concerns have been fueled by factors such as:
The BRICS' Push for De-Dollarization
In response to these concerns, the BRICS nations have been exploring alternative currency arrangements. In 2015, they announced plans to establish a common reserve currency, the BRICS Contingency Reserve Arrangement (CRA). This arrangement, initially funded with $100 billion, is intended to provide financial assistance to member countries during economic crises and reduce dependence on the US dollar.
Russia and China, in particular, have been vocal advocates for de-dollarization. Russia has been reducing its holdings of US Treasury bonds and promoting alternative payment systems, while China is exploring internationalization of its currency, the renminbi.
Trump's Threat
In a series of tweets in 2018, US President Donald Trump threatened economic retaliation against any country that considered moving away from the US dollar. He warned that countries doing business with Iran, which the US had recently sanctioned, would "have a very big economic problem" if they used currencies other than the dollar.
Trump's remarks were met with criticism from BRICS nations and many analysts. They were seen as an attempt to bully countries into continuing to use the US dollar, despite their concerns about its stability and fairness.
Top 5 FAQs
1. What is the BRICS Contingency Reserve Arrangement (CRA)? The CRA is a currency pool established by the BRICS nations to provide financial assistance to member countries during economic crises and reduce dependence on the US dollar.
2. Why are the BRICS interested in de-dollarization? The BRICS nations are concerned about the volatility and overreliance on the US dollar, as well as the potential for currency manipulation and economic blackmail by the US.
3. What is the impact of Trump's threat against de-dollarization? Trump's threat has raised concerns that the US is willing to use economic coercion to maintain the dominance of the US dollar.
4. Is the US dollar still the global reserve currency? Yes, the US dollar remains the world's dominant reserve currency, accounting for over 60% of global reserves.
5. What are the implications of a potential shift away from the US dollar? A shift away from the US dollar could have significant implications for the global economy, including reduced demand for US exports, increased volatility in currency markets, and potentially higher inflation.
Arfa Javaid, a young and talented content writer from Delhi, has made a name for herself in the writing and editing industry. With her skills and expertise, she has become a published writer on various platforms such as YourQuote, Nojoto, UC News, NewsDog, and jagranjosh.com. Through her hard work and dedication, she has established herself as a top content writer and has become an inspiration for others in the field. Her success story serves as a testament to the growth and opportunities in the writing industry, making her a role model for aspiring writers.
Anant Ambani, the youngest son of India's richest man Mukesh Ambani, will be receiving a significant salary of up to ₹20 crore per year, according to a shareholder notice filed by Reliance Industries. This is in addition to perquisites and allowances, as well as a share of the company's net profits, which will be determined by a committee. Anant, who has a Bachelor's degree from Brown University, is leading the expansion of the company's energy and materials businesses and driving its goal to become a Net Carbon Zero company by 2035.
Hundreds of bike taxi riders in Karnataka have taken to the streets to protest the state government's ban on bike taxi services. The riders are facing financial struggles as they have been stripped of their source of livelihood. Despite submitting letters and staging protests, the government has not yet indicated any policy reversal. However, the Transport Minister has directed strict actions against ride-hailing apps and auto-rickshaw drivers for charging exorbitant rates.
The decision by India to ban the import of certain jute products and woven fabrics via land route has left Bangladeshi exporters reeling, as they say they are the "victims of politics". With the ban, exporting these products to India through sea route would result in a significant increase in cost, in addition to losing their upper hand in the jute export sector. This is the third such ban imposed by India on imports from Bangladesh in three months, causing further uncertainty and inconvenience for exporters.
Oracle's CTO, Larry Ellison, has set his sights on becoming the top player in cloud databases, applications, and data centers. With their strong foothold in the market and growing demand for cloud migration, Ellison believes Oracle is uniquely positioned to achieve this goal. The company's multicloud strategy, specifically designed for AI workloads, has also proved to be a popular choice among customers with a 115% quarter-over-quarter revenue growth. However, the competition in cloud applications, particularly from Salesforce, may pose a challenge for Oracle's ambitious plan.
The farmers in Kerala's Thrissur district are facing a crisis as the state government has failed to fulfill their promises, including timely payment for paddy crops and incentives. The farmers are struggling with a loss of Rs 414 crore due to a decrease in the incentive amount provided by the government. They also demand repairs for crucial infrastructure like regulators and motor pumps, as well as timely availability of quality seeds and fertilizers. The delay in paddy payments is causing loan repayments to be delayed, adding to the farmers' financial burden.
The apparel sector in India has been experiencing significant growth in recent years, but this growth has come with its costs. Forces such as foreign companies, e-commerce, and changing fashion cycles have disrupted the market, leading to an increase in affordable and disposable clothing. As a result, traditional sustainability practices, rooted in local sourcing and durable materials, are being challenged. However, the rise of thrifting, which promotes circularity and challenges the throwaway culture, offers a middle ground between traditional methods and the appeal of fast fashion.
As part of its ongoing efforts to support military veterans and first responders, FOX News Network is offering exclusive deals for its streaming service, Fox Nation. Customers can contact Fox's online representatives for more information or visit their help page FAQ for assistance. Additionally, as part of their privacy policy, Fox is committed to protecting the rights of its customers under the CCPA.
The rapid shift in the cyber insurance landscape from a niche product to a critical business requirement has been driven by the rise in evolving cyber threats, according to Evaa Saiwal, Head of Liability Insurance at Policybazaar for Business. This growth is not just limited to large corporations, but is also being seen among SMEs and emerging sectors. Cyber insurance typically covers financial losses and liabilities resulting from cyber incidents and has two key components - first-party and third-party coverage. As cyber threats become more frequent, integrating cyber insurance with broader cyber risk management strategies will be essential for maintaining business continuity and creating a secure and resilient digital business environment.
Chairman of the Adani Group, Gautam Adani, joined the annual Rath Yatra in Puri, Odisha to participate in the chariot procession of Lord Jagannath, Lord Balabhadra, and Devi Subhadra. His humble seva (service) embodies the philosophy of "Seva hi Sadhana hai" (service is worship) that guides his personal and professional life. This symbolic gesture showcases the convergence of India's spiritual legacy with corporate responsibility, highlighting leadership as a balance between grounding and vision. Along with his presence, Adani Foundation teams also provided various forms of support to the pilgrims, such as distributing free meals and drinks, aiding in sanitation drives, and supporting the beach lifeguards. This commitment to holistic seva is a lived value that embodies the Adani Group's motto of "growth with goodness."