DeFI News by Thebittimes.Com

BRICS member China has pressed the accelerator on de-dollarization as lending in the Chinese yuan surges. China’s push for the yuan is working as trade and investments are moving away from the US dollar-based system and are entering into a multipolar world. The country’s exposure to the US dollar is declining as businesses are considering the yuan. The latest data from the Financial Times shows that deposits and bond investments by Chinese banks quadrupled to Rmb3.4tn ($480 billion) in five years. The development shows that the US dollar is no longer the central figure of trade and commerce. The BRICS de-dollarization agenda is working, despite its scale being smaller, while Chinese yuan settlements have doubled. Also Read: BRICS Speeds Up Dollar Selling, Chinese Firms Offload $51.8 Billion Source: SWIFT, Wind Exporters and importers in China are now using the Chinese yuan in settlements, the highest since December 2020. The move supports the BRICS de-dollarization agenda an...

The world is now witnessing a sharp change with the US dollar being sidestepped and overshadowed by local currencies. The majority of the countries are now strengthening their commitment to local currencies, powering local trade routes to evade US sanctions, to the point of ditching them completely. Many nations are using alternatives to the USD to make foreign trade deals, a phenomenon that could end up hurting the dollar in the long run. Also Read: BRICS Moves to Local Currency Trading: BRICS Currency Dead? Local Currencies Like Yuan in Global Energy Trade Are Taking Precedence Source: Watcher.Guru India and Russia have lately been engaging in a local currency narrative, involving the yuan in the majority of their deals. Russia has asked India to pay 10% of its oil payment in yuan, a currency that Russia has long been exploring in depth. As Russia can no longer conduct business in USD, the nation has switched to the Yuan, which continues to benefit the nation in the long run. Similar...

BRICS is beating the drum of a US dollar decline even before launching a common currency in the global markets. The operating style is typical of that of any developing country where leaders talk big but deliver nothing. It also reflects the mindset of emerging economies where a simple piece of governmental work is lauded as ‘major achievement’. Even the BRICS de-dollarization agenda falls under the same category which is heavily exaggerated to the brim by their leaders. Also Read: BRICS Inspires 15 Countries To Use Homegrown Payment System Rewriting trade deals and forging new partnerships is a daily yet regular phenomenon in the global financial world. That’s not the case for BRICS members, as each trade deal is shown as a brownie point to their people marketed as de-dollarization. While we agree that BRICS settled many deals in local currencies, the number is minuscule compared to the global trade volume. It is as good as making a mountain out of a molehill, which l...