Nilton David, director of monetary policy of the Central Bank of Brazil, said he does not see real chances that the BRICS can challenge the domain of the dollar in the next 10 years.
From the Central Bank of Brazil they have no doubts: no matter how much the BRICs look for roads to reduce their dependence on the dollar, there are no real chances that the block creates markets large enough to dethrone the green ticket in the next decade. This was stated on Monday Nilton David, director of monetary policy of the entity.
“Today there is no significant asset reserve called BRICS coins that can compete with the dollar“Said the official. And he was blunt:” I don’t think that changes in the next ten years. “
David admitted that some alternative liquidation tools can gain ground, especially to facilitate bilateral trade agreements. But he considered that this advance, although relevant, It is not enough to dispute global hegemony to the dollar.
Brazil: The Central Bank cuts its PBI expansion prognosis for 2018
The BRICS block – formed by Brazil, Russia, India, China and South Africa – has been exploring different forms of financial cooperation. Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates were recently added. However, according to Reuters, During this year’s Brazilian presidency, the group ruled out advance with a common currency And it will focus on mechanisms such as the connection of payment systems and the use of blockchain technologies promoted by the International Payment Bank.
From Washington, President Donald Trump reiterated his warnings against any attempt in the block for undermining the role of the dollar as a dominant currency in the global financial system. But at least for now, Everything indicates that your reign remains firm.
The role of countries that make up the BRICS
The BRICS represent a global economic force on the rise. They control more than 20% of world gold reserves, led by Russia and China, and produce more than 50% of the gas and more than 40% of the oil globally.
In recent decades, they promoted more than 40%of world economic growth, and it is projected that its average growth rate by the end of 2024 is 4%, exceeding G7 countries (1.7%) and the global rate (3.2%).
“The BRICs already play a prominent role in the world economy not only today, but it is quite clear that this role will only increase in the future,” said Vladimir Utin.
Source: Ambito
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