Hi ,
The US has misused the US dollar for decades.
And?
That doesn't mean that any time soon this will change.
A rag tag collection of theocracies , dictatorships, with the odd reasonable country , plus China just isn't going to cut it.
WHAT ARE THE CHALLENGES OF SETTING UP A BRICS CURRENCY?
Building a BRICS currency would be a "political project", South African central bank governor Lesetja Kganyago told a radio station in July."If you want it, you'll have to get a banking union, you'll have to get a fiscal union, you've got to get macroeconomic convergence," Kganyago said."Importantly, you need a disciplining mechanism for the countries that fall out of line with it... Plus they will need a common central bank... where does it get located?"Trade imbalances are also a problem, Herbert Poenisch, a senior fellow at Zhejiang University, wrote in a blog for think-tank OMFIF."All BRICS member countries have China as their main trading partner and little trade with each other
Recent Reuters article
Basically the best you can hope for is bilateral currency deals between countries , mostly China.
That should end well.
That is going on , but the progress is glacial.
Who decides what the exchange rate will be?
What is the bet they use the US dollar , or at a pinch the Euro , to work out the relativities.
Of course , they could use the RMB , that would
be fun.
Note the comments of the S. African central banker , remember the Euro formation , and then map out how a Brics currency is going to happen in the next 40 years.
cheers
Expand
