China backs Russia-proposed BRICS payment system
www.voanews.com
Analysts say China is interested in using alternative payment system to challenge the current system dominated by the US dollar
  • McDropout@lemmy.worldEnglish
    11·
    24 minutes ago

    Good for them for breaking North American hegemony.

    🇷🇺 🇨🇳 🙇‍♂️

    • Blackout@fedia.io
      2·
      6 minutes ago

      The only thing they’ve broken is their own economic growth. Alarms are going off in China particularly. Hard to make a recovery plan when government also controls the industry. Their last round of stimulus did absolutely nothing.

      • gravitas_deficiency@sh.itjust.worksEnglish
        2·
        3 minutes ago

        Not to mention, the other half is that they wouldn’t even be discussing this if Russia wasn’t being slowly economically strangled due to sanctions. And Russia wouldn’t be getting sanctioned if the hadn’t fucking invaded Ukraine proper in 2022.

  • partial_accumen@lemmy.worldEnglish
    122·
    6 hours ago

    Here’s where it falls apart, right here:

    [Vladimir Putin] also said the increased use of BRICS national currencies for transactions will “minimize geopolitical risks.”

    Some of the BRICS countries have wildly volatile currencies either because of governments “printing money” to devalue their currency for economic stimulus for exports or to pay down debts. Alternatively straight up currency manipulation by the sovereign states issuing them. I would think this makes settling transactions in these local currencies a big risk for commerce. You don’t know if the value of the currency you accept tomorrow will be worth what it is today. These are reasons GBP, Euro, and USD are so valuable as currencies, they generally have pretty consistent values.

    • Flying Squid@lemmy.worldMEnglish
      1·
      57 minutes ago

      Didn’t the Euro even start as being pegged to the dollar at 1:1 to stabilize it in the beginning? Or am I misremembering?

    • zante@slrpnk.netEnglish
      31·
      2 hours ago

      How will this be any worse on BRICS Clear than it currently is on Swift ?

    • FuglyDuck@lemmy.worldEnglish
      3·
      5 hours ago

      I suspect they’re- Russia- trying to pull a fast one, and china is okay because it won’t hurt them.

      Maybe this gives Russians access to reserve currencies that are harder than the ruble.

      • Pringles@lemm.eeEnglish
        4·
        5 hours ago

        China is ok with it because they will insist the Renminbi be used as the brics reserve currency.