With what was expected by economic freedom fighters across the global south this BRICS summit (Aug 2023 business forum), was a currency that would mirror that the USD and suave a financialy unipolar foreign exchange market, to that a multipolar economy, and aid in fast tracking development goals barred by western capitalism's business models and international business exploits through the dollar. An equitable and fast tracked trade environment was the call at order.
Instead, what was rendered is as below thoughts and scrutiny;
1. BRICS contingent, South Africa and Brazil looking to loan in national currencies;
My skepticism begged to ask why respective currencies would be in demand?
#BRICS+ may have squandered an opportunity of real global market fx reform on the context of exclusivity to the trade blocs commencements and interests.
Fx literacy would have you acknowledge the reason why the dollar is a highly sought for reserve & trade currency is on the basis that there is a broad global capital market under it's investment portfolio.
So for example, all the major brands are more or less American owned if not shared. And with such, I know that when you seek the USD to attain my market offering (gold for example), I'll be able to spend that issue (usd) in almost all global market places for goods, if not directly on U.S soil.
The question is then again, why should a South-African or Brazilian currency be one that should sit well in reserve banks globally? Why should it be a print in demand? What breadth in market offerings does the Rand & Brazilian coin pertain?
China and all it's manufacturing prowess haven't been able to position themselves in fx securities space until recent, as in the past, it's manufactured goods were not Chinese owned (largely of notable global-market enterprise).
They (China) are only now sure their currency is backed with local produce of real value & volume at liberated (partially decouple) disposition. The Brazilian's can too with oil, sugar etc, but only such! The south Africans can do to with gold, but only such precious materials space, something (more or so) which is not enough to convince global trade participants to invest in your print when there are other prints/currencies that can guarantee gold, oil, sugar, as well as an array of other brand goods at volumes and breadth unmatched. The fx securities framework remains supreme!
I was expecting a joint #brics currency that facilitates reserve holders access to Chinese, Russian, SouthAfrican, etc. produce in reflection to the blocs trade and manufacturing prowess globally.
2. #BRICS single digital currency; of which is not expected to be printed on credit, and speculated to start off at 1coin = $175.
For the purpose of trading the currency, not goods? presumably, of which if so - it aims at improving it's value in the money market space; potentially a good in itself.
• Not bad in anyway - as it give clients a new stock domain to hedge funds at paramount timing.
》Am I to scrutinize - you'd want a devalued rate to have it widely accessible.
• But as usual, maybe I'm just being over critical.
》Atleast it is backed by real value; gold - and better yet, endorsed by a group that are unrivaled where generating value is concerned on the global market.
》One step in the right direction. But we want to see an issue that is a dollar substitute in almost every expanse possible.
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