{"id":2003096,"date":"2023-08-16T21:23:01","date_gmt":"2023-08-17T01:23:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/anti-american-trade-bloc-considers-gold-backed-currency-to-challenge-us-dollar\/"},"modified":"2023-08-16T21:30:29","modified_gmt":"2023-08-17T01:30:29","slug":"anti-american-trade-bloc-considers-gold-backed-currency-to-challenge-us-dollar","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/anti-american-trade-bloc-considers-gold-backed-currency-to-challenge-us-dollar\/","title":{"rendered":"Trade bloc considers gold-backed currency to challenge US dollar."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fanti-american-trade-bloc-considers-gold-backed-currency-to-challenge-us-dollar%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2003096&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><h2>Is a Gold-Backed Currency on the Horizon for BRICS Nations?<\/h2>\n<p>They say all that \u2064glisters isn&#8217;t gold. But for some countries, gold represents a step \u2064toward divesting from U.S. dollar reliance.<\/p>\n<p>An emerging \u200dtrade bloc of nations\u2064 including Brazil, Russia, India, China, and\u200c South Africa\u2014commonly known as BRICS\u2014has created \u200binternational rumblings over the possible announcement of a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/russia-and-china-may-be-working-toward-new-gold-backed-currency\/\" title=\"Russia and China May Be Working Toward New Gold-Backed Currency\">gold-backed currency<\/a> \u200dat\u2063 its\u200d annual summit this year.<\/p>\n<p>To be hosted\u2064 in Johannesburg, South Africa, between Aug. 22\u201324, the BRICS conference will reportedly address criteria for new member applicants and an expansion agenda.<\/p>\n<blockquote>\n<h3>Related Stories<\/h3>\n<ul>\n<li><a href=\"http:\/\/www.theepochtimes.com\/opinion\/brics-and-the-currency-wars-5411541\">BRICS and \u2062the Currency Wars<\/a> \u2063 &#8211; 7\/25\/2023<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/us\/us-will-not-limit-partners-decisions-to-join-brics-white-house-5420579\">US Will \u200cNot Limit Partners&#8217; Decisions to \u200bJoin BRICS: White House<\/a> &#8211; 7\/25\/2023<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/opinion\/can-the-brics-syndicate-finally-gain-strategic-traction-5383098\">Can the BRICS Syndicate Finally Gain \u200cStrategic Traction?<\/a> &#8211; 7\/10\/2023<\/li>\n<li><a href=\"http:\/\/www.theepochtimes.com\/world\/south-africa-gives-putin-immunity-to-attend-world-changing-brics-summit-5302967\">South Africa Gives Putin Immunity to Attend \u2018World-Changing\u2019 BRICS Summit<\/a> &#8211; 5\/31\/2023<\/li>\n<\/ul>\n<\/blockquote>\n<p>Presently, 22\u2063 countries have \u2063applied\u200d to join the trade bloc.<\/p>\n<p>&#8220;Twenty-two countries\u2062 have \u200bformally approached BRICS countries to become full\u200d members. There&#8217;s an equal number of countries that have \u200cbeen informally \u200dasking about becoming BRICS members,&#8221; \u2063South Africa&#8217;s\u2062 BRICS \u200cambassador, Anil Sooklal, told reporters in July.<\/p>\n<p>Among \u2062the new \u2063membership hopefuls are Iran, \u2062Saudi Arabia, Argentina, and the United\u2064 Arab \u2063Emirates, according \u200bto\u2062 Sooklal.<\/p>\n<p>But the most surprising item on the summit&#8217;s agenda\u200b is the alleged\u2064 discussion of a common currency. Comments from Russian officials have ignited \u200dinternational buzz on the \u200crun-up to the summit.<\/p>\n<p>A spokesperson at the \u200cRussian Embassy\u2062 in Kenya stated, &#8220;The BRICS countries are planning to introduce a new trading currency, which \u2062will be backed by gold,&#8221; which was initially reported \u200cby RT \u2063News on \u200cJuly 5.<\/p>\n<p>Following\u200b that,\u200c after July&#8217;s Russia-Africa\u2063 summit,\u2064 Aleksandr Babakov,\u200c the Russian \u200bState Duma Deputy Speaker, reiterated the sentiment and said BRICS\u2063 and other African nations are developing a common currency to\u2064 challenge the U.S. dollar.<\/p>\n<p>\u201cThis is not\u2064 the RMB yuan\u2064 and not the ruble. There \u2064are already certain formulations. The name \u200bis not important, but it should be an analogue of \u2063the dollar,&#8221; Mr. Babakov said.<\/p>\n<p>\u201cAfter\u200c all, the BRICS, in terms of its potential today, is greater than the G7. That\u200d is, \u200cthe potential of \u2062the market where this currency can function is very\u2063 wide. There are no reasons to be\u200b tied to the dollar.\u201d<\/p>\n<p>Some\u200d commodity experts and economists \u2064say a shared currency\u200d for the trade bloc\u2014particularly one\u2063 backed by gold\u2014could \u200cthreaten U.S. dollar dominance. However, \u2064there \u200dare significant hurdles the ambitious BRICS nations need to \u2064address first.<\/p>\n<h2>Double-Edged Sword<\/h2>\n<p>&#8220;A common currency for BRICS is an idea\u200c as attractive \u2062as it is\u200d complex. A lunch meeting with BRICS central bank representatives years ago left me \u2064pondering the real\u200b challenges in making it a reality,&#8221; Michael Barton told The Epoch Times.<\/p>\n<p>Mr. Barton is \u200da\u2064 financial adviser and senior contributor for Wallet Savvy. \u200cHe \u2062noted the diverse economic makeup of the BRICS nations, coupled with varying inflation rates and\u200c <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/anti-american-trade-bloc-considers-gold-backed-currency-to-challenge-us-dollar\/\" title=\"Trade bloc considers gold-backed currency to challenge US dollar.\">delicate trade balancing acts<\/a>,\u2064 present significant hurdles to the \u2063dream of a common currency.<\/p>\n<p>That said, he thinks the allure of self-sufficiency and increased negotiating power could motivate\u2063 participating countries\u2062 to take \u200ca shot at the gold.<\/p>\n<p>&#8220;A shared currency would have to navigate governance hurdles and potential resistance from\u200d individual economic allies. BRICS&#8217;\u200c strength indeed lies in their diversity, but when we talk about a unified \u200ccurrency, this\u2062 strength becomes a multifaceted challenge. The sword of diversity\u2063 is sharp on both sides,&#8221; Mr. Barton said.<\/p>\n<p>And there&#8217;s already \u200copposition within the bloc \u200cto a shared currency.<\/p>\n<p>The same week the Russian Embassy created a stir\u200b with\u200c its comments, India&#8217;s External Affairs Minister, S. \u2062Jaishankar, told reporters at a \u200dpress conference that his country has no intention of supporting a BRICS currency.<\/p>\n<p>Instead, Mr. Jaishankar said India is \u200bprioritizing strengthening the rupee.<\/p>\n<p>When\u200c queried on a list \u200bof topics \u2064for the BRICS summit,\u2063 he replied, &#8220;On what we will discuss at the BRICS meeting, we\u2019ll have to see because there are many \u200cother issues\u2014but there is no idea of a BRICS currency.\u201d<\/p>\n<p>Contradicting statements\u200d aside, there&#8217;s evidence member\u200c nations are giving serious consideration to a gold-backed currency.<\/p>\n<h2>The Golden Ticket<\/h2>\n<p>This year, \u200dcentral banks have been purchasing\u2064 gold at a record \u200dpace,\u200d and BRICS\u200b countries are among the top buyers. In the first two months of 2023, China, Russia, and \u2064India all \u2064increased their gold holdings at an astonishing rate.<\/p>\n<p>Gold bullion purchases in China topped out at nearly 40 tons, while Russia weighed in at 31.1 tons. India also bought 2.8 tons. China added to its \u200dgold reserves for eight consecutive\u2062 months as\u2063 of July this year.<\/p>\n<p>At the end of the day, the BRICS nations share an essential common ground: a deeply rooted desire to shift away from using the U.S. dollar.<\/p>\n<p>A recent U.S. investor&#8217;s report noted, &#8220;For the \u200dfirst time ever, BRICS\u200c countries\u2019 share\u2062 of the global economy has surpassed that of\u200b the G7 nations \u2062&#8230; on a purchasing parity basis.&#8221;<\/p>\n<p>Financial expert Andrew Lokenauth told \u2063The Epoch Times, &#8220;A\u2064 gold-backed currency\u200b would \u200clikely have \u2063a significant impact on the U.S. dollar as the global \u2062reserve currency. If BRICS \u200dcountries began using a gold-backed currency \u2062for trade, it would reduce their reliance\u2062 on \u2062the U.S. dollar.&#8221;<\/p>\n<p>Mr. Lokenauth\u200d has worked for top Wall Street\u200b firms and founded TheFinanceNewsletter.com. He \u2063believes a BRICS currency\u200d could lead to an overall \u2064decline in U.S. dollar value\u2064 since it wouldn&#8217;t be \u200cas widely used.<\/p>\n<p>&#8220;Additionally, a gold-backed currency would\u200c be more stable than the U.S.\u2063 dollar, which is often volatile due to political and \u200ceconomic factors. This could make\u200d it a \u2064more attractive option for countries looking for a safe and reliable \u2063currency to hold,&#8221; he\u2063 said.<\/p>\n<p>That said, Mr.\u200d Lokenauth added a lot stands between the idea and the successful implementation of a shared currency. Financial insider \u200band senior contributor at MoneyInc., Andrew Gosselin, seconded this.<\/p>\n<p>&#8220;The idea of a common currency is fascinating, but let&#8217;s not forget the European Union&#8217;s experience. The Euro \u200bhas its own set of challenges.\u200d With BRICS,\u200d you&#8217;re\u2062 dealing with\u200b culturally, politically, and economically \u200bdiverse nations,&#8221; Mr. Gosselin told\u200c The\u2062 Epoch Times.<\/p>\n<p>He said that, beyond huge logistical challenges, there are matters like national pride,\u2062 regulatory controls, and \u2064individual priorities to consider.<\/p>\n<p>&#8220;Take Brazil&#8217;s agricultural \u200csector\u2063 or India&#8217;s \u200cIT industry; they have different needs. A one-size-fits-all approach? Unlikely.&#8221;<\/p>\n<p>Still, Mr. Gosselin \u2063admits that even the whisper of a gold-backed BRICS currency \u200bwould have ripples in the international community. Particularly for the United \u2062States.<\/p>\n<p>Financial, economic, and political analysts generally agree that attempts to circulate a common currency among the BRICS nations has the potential to threaten\u2064 the U.S. dollar\u2014keyword, potential\u2014but the impact\u2064 would likely be a\u2064 long-term \u2063by-product. Not overnight.<\/p>\n<p>Western think tanks have also labeled a potential BRICS \u2064currency as a critical \u200cstepping stone for China&#8217;s &#8220;de-dollarization&#8221; plan to uproot U.S. economic and geopolitical hegemony.<\/p>\n<p>The announcement\u200c of a shared currency for the trade bloc has a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/us-mutes-talk-of-saudi-israel-deal-in-time-for-2024-election\/\" title=\"US avoids discussing potential Saudi-Israel deal ahead of 2024 election.\">long road \u2064ahead<\/a>, but \u200c<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/comparing-trump-and-bidens-covid-relief-bills\/\" title=\"Comparing Trump And Biden\u2019s COVID Relief Bills\">short-term economic<\/a>\u200d and market waves are\u2064 still \u2064possible.<\/p>\n<p>&#8220;Back when I was deeply engrossed in my work at Cargill Investor Services, the pulse of currency dynamics had my full attention. \u2064It&#8217;s here that I realized the real \u2063fragility of \u2064finance \u2063and how a mere suggestion of change can \u2064stir the calm waters of the global economy,&#8221;\u2063 Mr. Barton said.<\/p>\n<p>Mr. Lokenauth, Mr. Gosselin, and Mr. Barton agree\u200d that \u200cmerely mentioning a gold-backed currency would likely create \u200da spike in the metal&#8217;s price point.<\/p>\n<p>&#8220;This\u200c is \u2063because investors would see \u200cgold as a more\u2063 attractive investment,\u2063 as\u2062 it would\u200d be backed by a basket of\u200c currencies\u2062 from major \u200ceconomies,&#8221; Mr. Lokenauth said.<\/p>\n<p>And though\u2063 the \u2064U.S. dollar\u200c hasn&#8217;t hitched its<\/p>\n","protected":false},"excerpt":{"rendered":"<p>They claim not all that glitters is gold, yet for certain countries, gold symbolizes a move away from dependence on the U.S. dollar. BRICS, a trade bloc comprising Brazil, Russia, India, China, and South Africa, is causing global speculation with talks of introducing a gold-supported currency at their upcoming summit.<\/p>\n","protected":false},"author":334,"featured_media":2003097,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-2003096","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2003096","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/334"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2003096"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2003096\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2003097"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2003096"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2003096"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2003096"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}