BRICS and the Fiction of “De-Dollarization” which must be understood between the lines.
At first glance, the article makes the case that neither NDB ("BRICS Bank") nor CRA fund are relevant signs of a de-dollarization trend. It concludes at least with :
"The geopolitics behind the BRICS initiative are crucial. While the BRICS initiative from the very outset has accepted the dollar system, this does not exclude the introduction, at a later stage of a multiple currency arrangement, which challenges dollar hegemony."
Because I know Pr. Chossudovsky reads some of my articles and tweets, I would like to remark :
Geopolitics, in its current academic definition, is now too limited to describe efficiently what is happening. Any relevant global analysis must mix geo-economics, geopolitics and history of philosophy.
BRICS as the champion of de-dollarization is a frequent theme since BRICS' first meeting in 2009 or even before.
Analyzing the de-dollarization trend requires explaining :
- why the BRICS leaders really need and want de-dollarization, whatever US pressures ;
- why AIIB was proposed in October 2014 by China - not by BRICS - and after NDB/CRA announcements by BRICS leaders ;
- why Russia joined AIIB the last day and not before, and how this made it much easier for EU countries to join AIIB ;
- why UK joined AIIB before any other ex-US allies ;
- providing references when claiming AIIB/NDB will provide loans only denominated in dollars ; explaining the importance of the problem to be solved if these institutions would like to modify this currency for future loans ;
- the mean duration of the loans, and the flow of funding ;
- the de-dollarization is first a loss of influence / soft power by US (and a gain by BRICS), before being a currency choice ;
- AIIB / NDB are institutions targeting development and infrastructure, not trade invoicing which is a much larger scale ;
- de-dollarization must be a rapid process but as progressive as possible ;
- which IMS system will progressively replace dollar, beyond bilateral currency swaps or emerging multiple currency arrangement between BRICS countries ;
- providing figures of main currencies volumes in SWIFT payment system or currencies' shares of global foreign-exchange transactions, and mentioning emerging BRICS alternative payment systems ;