Rise of BRICS and the West: The dethroning of the US Dollar
BUSINESS ECONOMICS|June 01 - 30, 2024
The International Monetary Fund (IMF) has been warning about a growing rift in global trade along geopolitical lines.
Madhusudhanan S
Rise of BRICS and the West: The dethroning of the US Dollar

This trend could potentially lead to the collapse of world trade and a slowdown in global growth. But before delving further, it is essential for readers who may not follow international trade to understand BRICS. Here is a brief background:

Brief background of BRICS

The alliance of BRICS is built on a foundation of friendship, solidarity, and shared interests. BRICS represents over 42% of the global population, 30% of the world’s territory, 23% of global GDP, and 18% of global trade. After formalizing it as BRIC on June 16, 2009, the leaders held the first BRIC Summit in Yekaterinburg, Russia. In 2010, South Africa was invited to join, thus becoming BRICS.

Understanding how international trade relations are reshaping is crucial before examining how the US dollar’s dominance has impacted BRICS nations and why BRICS is leading the trend towards de-dollarization. This article concludes with an overview.

Reshaping of trade relations

On May 7, 2024, Gita Gopinath, the First Deputy Managing Director of the IMF, stated, “After years of shocks—including the COVID-19 pandemic and Russia’s invasion of Ukraine—countries are reevaluating their trading partners based on economic and national security concerns.”

The IMF observes that some countries are reconsidering their heavy dependence on the dollar for international transactions and reserve holdings. This shift indicates increasing polarization in trade relations, with nations moving away from globalization towards protectionism.

A World Bank study on global trade noted a slowdown, with only a marginal expansion in goods and services by 0.2% in 2023, marking the slowest pace in 50 years outside of global recessions. It further stated, “It would have declined outright but for the growth of trade in services.”

Denne historien er fra June 01 - 30, 2024-utgaven av BUSINESS ECONOMICS.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra June 01 - 30, 2024-utgaven av BUSINESS ECONOMICS.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA BUSINESS ECONOMICSSe alt
Bank of Baroda, Kolkata Zone organised Mega Kisan Melas in West Bengal
BUSINESS ECONOMICS

Bank of Baroda, Kolkata Zone organised Mega Kisan Melas in West Bengal

Bank of Baroda (BOB) organised Mega Kisan Mela at Konkalitala in Birbhum District of West Bengal on November 18, 2024 as a part of the 7th Edition of the Baroda Kisan Pakhwada (BKP).

time-read
1 min  |
December 01 - 31, 2024
Time-Bound Disposal of Cases to Expedite the Delivery of Justice and affordabe by all in India
BUSINESS ECONOMICS

Time-Bound Disposal of Cases to Expedite the Delivery of Justice and affordabe by all in India

The delay in the disposal of cases in Indian courts remains a significant hurdle to the nation's progress.

time-read
3 mins  |
December 01 - 31, 2024
Dev Deepawali: A grand celebration of light, spirituality, and culture in Varanasi
BUSINESS ECONOMICS

Dev Deepawali: A grand celebration of light, spirituality, and culture in Varanasi

The holy city of Varanasi, often regarded as India's spiritual and cultural heart, came alive with the splendor of Dev Deepawali on the sacred day of Kartik Purnima.

time-read
2 mins  |
December 01 - 31, 2024
The life of Job 'Ye judge not the judgment of God' - Jesus Christ
BUSINESS ECONOMICS

The life of Job 'Ye judge not the judgment of God' - Jesus Christ

The Holy Bible reveals through the life of Job how the Lord tests the righteous and that faith helps one to overcome life's adversities.

time-read
6 mins  |
December 01 - 31, 2024
India has the highest potential for the garment industry, only a conducive government policy is required.
BUSINESS ECONOMICS

India has the highest potential for the garment industry, only a conducive government policy is required.

India's textile industry is poised for remarkable growth, with expectations to double its contribution to the GDP within the next six to seven years.

time-read
3 mins  |
December 01 - 31, 2024
Global Public Debt may be worse than it appears, warns IMF
BUSINESS ECONOMICS

Global Public Debt may be worse than it appears, warns IMF

Global Public Debt Set to Exceed $100 Trillion, Warns IMF

time-read
4 mins  |
December 01 - 31, 2024
The economic consequences of Trump's Presidency: A global perspective
BUSINESS ECONOMICS

The economic consequences of Trump's Presidency: A global perspective

One of the key economic factors contributing to the Democrats' loss in the US elections was the significant rise in inflation, which was initially triggered by the COVID-19 pandemic and exacerbated by the Russia-Ukraine war.

time-read
5 mins  |
December 01 - 31, 2024
Challenges and Successes in West Bengal's Education Sector: A Comprehensive Overview
BUSINESS ECONOMICS

Challenges and Successes in West Bengal's Education Sector: A Comprehensive Overview

The education system in West Bengal, particularly in districts, villages, slums, and government institutions, reflects a blend of progress and ongoing challenges.

time-read
5 mins  |
December 01 - 31, 2024
What India can expect from Trump's return
BUSINESS ECONOMICS

What India can expect from Trump's return

I may be too early to predict how Donald Trump's second term as president will impact the global oil market.

time-read
2 mins  |
December 01 - 31, 2024
Stocks Surge Following Donald Trump's Election as 47th President of the USA
BUSINESS ECONOMICS

Stocks Surge Following Donald Trump's Election as 47th President of the USA

Stocks soared following the election of Donald Trump as the 47th President of the United States. Investors anticipated that the Information Technology (IT) sector would benefit from lower corporate taxes under the Republican regime, with IT stocks leading the rally.

time-read
1 min  |
December 01 - 31, 2024