As per the deal, 95 per cent of the $260 billion worth of trade will be settled in yuan.
It's like an economic visual of Putin's balls in Xi Jinpeng's grip. The other 5%? A blend of rubles and euros.
In essence, BRICS is trying to make the yuan a world reserve currency. That's how they're going to "sanction proof" them selves, by leaning on Chinese economy, and tbh, since a crapton of manufacturing and fabrication already happens in China, it does make a lot of sense.
Perhaps we'll see the return of cold war era economic policies as a result. You can almost hear the liberals (neo or classical, take your pick - they both suck) begrudgingly press the button marked "Protectionism".
In any case, welcome to the CwaaS, or "Cold war as a Service". Smack SWIFT and BRICS together, see what happens.
since a crapton of manufacturing and fabrication already happens in China, it does make a lot of sense.
Western manufacturing and fabrication is already pulling out of China; this action will accelerate that trend. It's also a poor bet due to China's slow motion demographic collapse.
Frankly this could be implemented tomorrow and by the end of 2034 it would be dead; torn apart by internal conflict and China's gradual economic decline.
Why not band together and do a united currency like the Euro or the CFA Franc?
Because that requires a unified monetary policy. The BRICs countries don't actually have that much in common, meaning they need to treat their domestic monetary policies to be most advantageous internally. Having one currency wouldn't allow that. What it really boils down to is how a country included would be able to spend its own money and how much debt it would be allowed to carry.
If it's not worth your time to explain something that, based on the downvotes, clearly no one understands, then it was probably not worth your time to say it in the first place.
I did and couldn't find anything about it being a scam.
Merchants after converting could decide how to round their prices. They chose to round up because it was an easy excuse to raise prices. That's not a scam. That's business being business.
