The shift from the USD could mean a complete overhaul of global economic structures and trade and it seems to be that it would become reality in a not-so-distant future.
If one was to draw a venn diagram between the G20 presidency and BRICS the two platforms, they would certainly have a lot in common. The coming G20 Troika would consist of India, Brazil, and South Africa.
“This is significant not only because of enhanced representation of these countries but also because it is indicative of the tides that are shifting from the proverbial domination of the west to a focus on the global South and countries with robust and burgeoning economies that are also willing to assist each other in their rise. It represents a shift in the widely accepted standard procedures of global politics and economics,” explains Dr Aparaajita Pandey is an independent political analyst with a PhD in Latin American Studies from JNU.
In conversation with Financial Express Online, she says that this shift and its acceptance albeit often begrudging acceptance of the beginning of multipolarity is reflected in the fora like the G20. “The deepening of relations between India and Brazil, and the Brazilian attempt at strengthening their association with China and Russia stands testament to a definitive shift away from the west and its supremacy, particularly that of the US.”
In her opinion the easiest manifestation of this increasing rift between the global South and the west is countries willing and planning to conduct trade in currencies other than the USD. For almost a century the USD has been the only means of international trade and transactions. Everything from purchasing power parity to the price of crude oil is measured in the USD. Recently however, nations have begun to announce their willingness to trade in local currencies. The shift from the USD could mean a complete overhaul of global economic structures and trade and it seems to be that it would become reality in a not-so-distant future.
In a world where economic tides are shifting, the BRICS bloc’s resolute decision to step away from the US dollar reflects not only their commitment to promoting local currencies but also their collective vision for a more multipolar global economy. As they prepare to welcome six more nations into the BRICS alliance by 2024, the geopolitical landscape is on the brink of transformation. This bold move away from the USD could indeed herald a not-so-distant future where international trade, monetary systems, and economic structures undergo a profound and unprecedented evolution.
https://www.financialexpress.com/business/defence-brics-and-g20-shifting-dynamics-in-global-politics-and-economics-3236529/
