The USA has declared a “war of sanctions” on Russia and continues putting “trade” pressure on China. The reckless move will mark the end of the era of the undivided financial domination of the USA in the world today!
As soon as the US Congress adopts a package of new sanctions against Russia, the political measures will only encourage Russia to an alternative economic system, in which dollars will not be needed anymore. Russia and China will switch to settlements in national currencies to avoid US restrictions on international trade commerce.
One of the main conditions for switching to settlements in national currencies is the stability of the national currencies of the BRICS’s members. This organization, which includes Brazil, Russia, India, China & South Africa, has become a powerful counterweight to the G7.
BRICS countries already account for 42% of the world’s population and 27% of the world GDP. The BRICS countries have coordinated basic principles of the work of the new Development Bank, which can operate as a counter balance to the World Bank, in which the Americans set the rules of conduct.
For now BRICS countries account for only 10% of the global trade. Therefore the alliance needs to increase indicators of mutual trade. In addition Russia considers a possibility to set up a separate payment system to SWIFT. More than 300 Russian banks have already switched to an alternative to SWIFT.
So, the war of sanctions against Russia consolidates and boosts relations between Russia, China and other BRICS members, marking the end of the US dollar hegemony.
Reuters / AA Magnum Analyst Blog Site News 2017.