Mzaad

BRICS’ next move: A return to a gold standard?

google news icon

BRICS' next move: A return to a gold standard?


JMG-AD

According to Simon Hunt, founder of Simon Hunt Strategic Services, the impact of the BRICS nations—Brazil, Russia, India, China, and South Africa—should not be understated, particularly when it comes to the threat it poses to the U.S. dollar as the world’s reserve currency.

“The involvement of BRICS has been a deliberate, slow movement … now I think they are in a position to make the next step upwards,” Hunt told Michelle Makori, Lead Anchor and Editor-in-Chief at Kitco News. “It’s a very serious attack on the dollar world that has existed since World War II.”

The next step for the BRICS countries could be the introduction of a new gold-backed currency, Hunt pointed out.

The BRICS’ upcoming August summit in South Africa is being closely watched for any clues as to what this new currency will look like and how soon it can be introduced.

And that announcement and launch could be just around the corner, Hunt said. “In the mid-2020s, which is only a few years away, it will be convertible into gold,” he noted. “I think we will eventually see [a full-on return to the gold standard]. That will probably happen before 2030 by countries who are now and will be members of BRICS+.”

To find out why Hunt believes the BRICS countries will introduce a gold-backed currency, watch the video above.

Many do not fully grasp the inner structure of the BRICS group, which is why its influence can often be overlooked.

“There’s a very strong chosen path by BRICS to develop a new mechanism, which will be against G7 countries. People don’t appreciate the depth that BRICS has created in its Secretariat,” Hunt said. “They have special Secretariats for every single part of the world, whether it be geopolitics, trade, finance, education, and even sports.”

And the BRICS group is about to expand, with Hunt not ruling out more countries joining in the next couple of years. And the Gulf countries are likely to be the first on the list.

Last year, China expressed interest in starting a process of admitting new members. There are now reportedly 20 countries that want to join the BRICS alliance, including Saudi Arabia, Argentina, Egypt, Iran, Turkey, United Arab Emirates, Thailand, and Venezuela.

At the end of June, Ethiopia, one of Africa’s fastest-growing economies, asked to join the bloc.

To find out how China and Shanghai Gold Exchange will play a critical role in the workings of the new BRICS currency, watch the video above.

The de-dollarization trend is also gathering pace, with Hunt warning that the energy trade is turning away from the greenback and geopolitical implications are significant.

“So much of the energy market will no longer be in dollars. Why should central banks hold dollars? Any country that’s part of BRICS don’t need that,” Hunt said. “Other central banks will look around and say, ‘How much of our reserves should we hold in dollars?’ It won’t be the same percentage.”

Chancery-Solicitors-Ad-banner-v2-updated
LEXPERT SOLICITORS LLP

Next Post

Former chief prosecutor Nazir to complain over police stop error

Tue Jul 11 , 2023
Follow us on Google News to get latest news Nazir Afzal, A former chief prosecutor has said he will make a formal complaint over an error which led to his car’s tyres being burst during a police stop. In Manchester on Sunday, he claimed that while he was slowing down […]
Former chief prosecutor Nazir to complain over police stop error

You May Like

Subscribe Our Newsletter

Daily Dazzling Dawn is the first and only international and non-profitable newspaper, which is 100% ownership of professional journalists from Bangladeshi origin with 20 years of experience in global journalism. The main aim of the newspaper is promoting ethical journalism with truth, accuracy and proficiency.

Editor in Chief

Dulal Ahmed Chowdhury

Dulal Ahmed Chowdhury is the Editor of The Daily Dazzling Dawn. Previously, he has been serving in important positions in all the famous national dailies of the Bangladesh since the nineties. He has played a commendable role in journalism by participating in various events at the national and international levels. United Nations Conference, World Climate Conference, SAARC Summit are notable among them.

Quick Jump

error: Content is protected !!