📆 ANNOUNCEMENT: On April 5, at 11:00 Moscow Time (GMT+3), the Valdai Club will host an expert discussion, titled “The New Economic Order: Is it Really Possible to End the Dollar Monopoly?”

De-dollarisation is becoming an increasingly significant tool for changing the world economic order. In many ways, it is the dollar’s monopoly in world trade and the financial system that has led to the current imbalances and inequalities. The past year has recorded an increase in trading in national currencies. For Russia, the main impetus on the path to the transition to settlements in national currencies was the sanctions pressure from the West. In 2022, the share of transactions in national currencies within the Eurasian Economic Union increased to 75%. Early this year, Saudi Arabia announced its readiness to conduct transactions for the sale of oil in the local currencies of the countries it does business with, and on March 29 it became clear that China and Brazil had entered into an agreement on mutual settlements without the use of the US dollar.

However, until dollar abandonment becomes a new reality, for some countries this process may take decades. Experts do not exclude the possibility of creating a single world currency in the future, which would exist without being tied to a particular issuing country, and could have a digital format.

❓How realistic are the prospects for such a massive change in the world economic order?
❓What will replace the dollar?
❓How will abandoning the dollar change the global financial system?

Participants in the expert discussion will try to answer these and other questions.

🎙 Speakers:

🇷🇺 Dmitry Birichevsky, Head of the Department for Economic Cooperation of the Russian Foreign Ministry

🇨🇦 Radhika Desai, Professor at the Department of Political Studies and Director, Geopolitical Economy Research Group, University of Manitoba, Winnipeg, Canada

🇨🇦 Dimitri Laskaris, lawyer and Green Party of Canada activist

🇷🇺 Alexander Losev, member of the Presidium of the Council for Foreign and Defense Policy (SVOP)

🇷🇺 Nathalia Zaiser, Chair of the Board/Founder, Africa Business Initiative Union

Moderator:

🗣 Oleg Barabanov, Programme Director of the Valdai Discussion Club

Working languages: Russian, English.

https://valdaiclub.com/events/announcements/valdai-club-to-discuss-the-end-of-the-dollar-monopoly/

ℹ️ Information for the media: In order to get accredited for the event, please fill out the form on our website or call +79269307763.

A link to the live broadcast of the discussion will be posted on all online platforms of the Valdai Club: on the website, Twitter, VKontakte, Telegram and Zen.

#Norms_and_Values #dedollarisation #finance

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⏰ TODAY at 11:00 Moscow Time (GMT+3), the Valdai Club will host an expert discussion, titled “The New Economic Order: Is it Really Possible to End the Dollar Monopoly?”

❓How realistic are the prospects for such a massive change in the world economic order?
❓What will replace the dollar?
❓How will abandoning the dollar change the global financial system?

Participants in the expert discussion will try to answer these and other questions.

A link to the live broadcast of the discussion will be posted on all online platforms of the Valdai Club: on the website, Twitter, VKontakte, Telegram and Zen.

#Norms_and_Values #dedollarisation #finance

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UPD: The livestream is over. The video of the discussion is available via the same link. Stay tuned!

🎥 LIVE: at 11:00 Moscow Time (GMT+3), we are starting an expert discussion, titled “The New Economic Order: Is it Really Possible to End the Dollar Monopoly?”

https://vk.com/video-214192832_456239088

#Norms_and_Values #dedollarisation #finance

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💸🌐 Global debt has hit a record $300 trillion, or 349% leverage on gross domestic product.

Global debt is now $45 trillion higher than its pre-pandemic level and is expected to continue increasing rapidly.

We prepared an infographic on global debt. The high-res infographic is available via this link.

#valdai_infogaphics #finance

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⏰ TODAY at 2:00 p.m. Moscow time, the Valdai Club will host an expert discussion dedicated to the financial settlements of the BRICS countries.

❓In what form are new settlement mechanisms possible within the BRICS framework?
❓What problems may arise during the implementation of various financial projects?
❓How universal can such mechanisms be?
❓What factors will determine the competitiveness of new mechanisms?
❓What can be done within the framework of the Russian presidency of BRICS to develop the initiative on new financial mechanisms?

Participants in the discussion will try to answer these and other questions.

Links to the live broadcast of the discussion will be posted on all online platforms of the Valdai Club: on the website, X (formerly Twitter), VKontakte, Telegram and Dzen. 

#Multipolarity_and_Connectivity #BRICS #economy #finance

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🎥 LIVE: at 2:00 p.m. Moscow time, the Valdai Club will host an expert discussion dedicated to the financial settlements of the BRICS countries.

https://vk.com/video-214192832_456239181

#Multipolarity_and_Connectivity #BRICS #economy #finance

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🪙 The creation of new financial mechanisms through BRICS is one of the most promising fields for the development of the association.

In the final declaration of the BRICS countries after the 2023 Summit, financial policy was given quite a lot of attention. In particular, it was stated that the BRICS Payment Task Force (BPTF) needs to prepare a report on payment mechanisms, including those based on cross-border payment systems.

The BRICS clearly distinguishes a group of countries for which the issue of financial settlements is directly related to national security.

🇷🇺 First and foremost, this relates to Russia, against which a significant amount of financial and trade sanctions has been imposed by the United States and its allies. It is Russia today that is most interested in diversifying global finance.

🇨🇳 Long-term stakeholders include China. So far, sanctions against China are incomparable with restrictions against Russia. However, an escalation of the rivalry between Beijing and Washington is a very likely scenario.

🇮🇷 Among the new members of the association, the interested parties include Iran, which has been under US sanctions for more than 40 years and is effectively excluded from the world of global finance, with its dominance of dollar payments.

The remaining countries which were in BRICS prior to this year (India, Brazil and South Africa), and most of the new ones (Egypt, Ethiopia and the UAE), are still closely integrated into the existing US-centric payment system. The diversification of such a system is hardly an urgent task for them. 

Despite the differences in the motivation of the BRICS member countries, the very task of developing a settlement system within the BRICS and with third countries seems to be useful for them to one degree or another. The question is how sustainable will the work on the new financial infrastructure be and what results will it lead to? Writes Ivan Timofeev, Programme Director of the Valdai Discussion Club.

https://valdaiclub.com/a/highlights/financial-settlements-within-the-brics-framework/

#Multipolarity_and_Connectivity #BRICS #finance

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🪙 Alternatives to the Dollar: Financial Settlement Mechanisms for a Multipolar World

On March 18, 2024, the Valdai Club hosted an expert discussion dedicated to financial settlements within the BRICS.

💬 Moderator Ivan Timofeev recalled that, according to the final declaration of the 2023 BRICS summit, the relevant departments of the member countries had to work out possible mechanisms for financial settlements. The talk was about creating a system that was not hostile to the West, but functional and protected from politicisation by third countries. The results achieved to date, in the form of ideas and projects, are planned to be presented at the summit in Kazan.

💬 The world understands that the unipolar financial system centred around the US dollar does not function properly, Paulo Nogueira Batista Jr., Vice President of the New Development Bank (NDB) (2015-2017), and Executive Director at the IMF (2007-2015), noted during the discussion. The dollar's position is undermined by a number of factors. These include both problems in the American economy and Washington's use of the dollar as a weapon, particularly against Russia and Iran. At the same time, geopolitical changes play a significant role. The world is moving towards multipolarity, and this requires a multipolar financial system. The question is whether BRICS can offer it. He considers possible steps in this direction to be the creation of a common currency basket under the code name R5, the development of a payment and settlement system to replace SWIFT, and the development of settlements in national currencies.

💬 John Gong, Vice-President for Research and Strategy at the Israeli branch of the University of International Business and Economics, and an expert at the China Forum, outlined the main avenues for finding an alternative to the dollar. First, we are talking about creating a common currency at the level of the New Development Bank. For now, it is difficult to say anything concrete about the prospects of this project, since a number of practical problems have not yet been resolved. Second, in Hong Kong, together with the UAE, an experiment was conducted to create a so-called currency bridge to carry out transactions bypassing the dollar. On this path, according to John Gong, some success has already been achieved. Third, one of the currencies of the member countries, most likely the yuan, may be promoted to the role of an alternative to the dollar, at least within the BRICS framework. The idea of a currency bridge seems to be the most viable option, but the analyst emphasised that there is no need to limit oneself to only one of the areas and it makes sense to develop everything at the same time.

💬 Arvind Gupta, Head and Co-Founder of the Digital India Foundation, noted that the BRICS group is not yet ripe for the introduction of a single currency. Therefore, it may make sense to focus on developing interaction between national payment systems. He called trust an extremely significant factor in this aspect, adding that it will be easier to achieve if development is based on the use of public rather than private digital infrastructure. It is also important that this infrastructure is not controlled by any one country, he argued.

💬 Ibrahim Karsany, Economic Consultant, Dubai Public Policy Research Centre, considers the idea of multipolarity to be internally contradictory and prefers to talk about diversity and diversification to avoid any form of domination. He believes there is support for the system of Western domination in international organisations created after the Second World War, that is, in the system of the Bretton Woods institutions. Accordingly, BRICS needs to develop an alternative to these institutions, and not only in the field of financial settlements.

https://valdaiclub.com/events/posts/articles/alternatives-to-the-dollar-financial-settlement-mechanisms-for-a-multipolar-world/

#Multipolarity_and_Connectivity #BRICS #economy #finance

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