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BRICS dollar breaks the chain
Material posted: Publication date: 17-07-2014

The world press closely following the visit of Putin to Latin America and the Brazilian BRICS summit. This is easily explained – most recently Washington solemnly announced complete isolation of Moscow. However, since then Russian President visited China, France and Austria. And here's the new tour immediately in four States: Cuba, Nicaragua, Argentina and Brazil. In short, the observers were created the overall impression that the mantras and spells of the White house about the political blockade of our country in the world no one except the aides of Obama, does not hear. And if the "dark Lord" goes the cry.

But that's not all. The most sad for Washington events occurred in the end of a trip of Vladimir Putin. At the 6th BRICS summit it was decided to establish two new financial institutions, which, according to English newspaper the Guardian, "may change the global economic landscape". The Chinese appreciate everything that has happened to be exact. In the opinion of the Central Committee of the CPC newspaper "people's daily", it is neither more nor less of the "liberation from the shackles of the dollar."

The first main result of the BRICS summit was the decision to establish a "New development Bank". It is planned that operation will start in 2016. The activities of this so-called "BRICS Bank" will facilitate mutual payments and credit services between the countries – members of the Association. But most importantly – will reduce the dependence of these States on the dollar and the Euro.According to the version of the Western press, the new Bank will operate on the same principles as all known, the world Bank. His initial financial capital will make 50 billion dollars. This money in equal parts will make all the BRICS countries.

The second important outcome was the agreement to establish a 100-billion Fund to stabilize currency markets. According to the all the same The Guardian, this pool of foreign exchange reserves "is meant to protect BRICS Nations from financial shocks and reduce their dependence on the IMF". To achieve independence from the boring Western money bags the BRICS are willing to pitch in. The highest total will give the China – $ 41 billion. Brazil, India and Russia will contribute 18 billion and South Africa will add the missing $ 5 billion.

According to analysts, as a result of this breakthrough, the BRICS will reach a new level. From a loose group of countries, which have previously been linked mainly only the acronym appears Association with an additional line of defence against financial attacks bigwigs from London City and new York's Wall Street. Such a transformation is expensive. Using military force without the threat of mutual destruction of the USA can't do anything neither with Russia nor with China. So now, to gain more freedom in international Affairs, it is necessary to weaken the financial hegemony of Washington. Only then can you attempt to negotiate with the West on equal terms.

Despite its economic leadership in the BRICS, in Beijing believe in the avant-garde movement of rejection of the dollar is Moscow. According to Chinese media, the Kremlin has made great efforts: "the head of the Central Bank of Russia Elvira Nabiullina visited China. Together with the Director of the Central Bank of China, Including the People she discussed issues related to signing of agreement on currency swaps". In addition, China and Russia actively establish a multilateral system of exchange with other States of the BRICS.

Of course, now on the way of rejection of the dollar made only the first steps. But this is also very interested in the huge China, with its huge financial reserves of several trillion dollars.According to Western experts, have great potential and all the BRICS countries are home to 46% of the global population and on the economy accounts for 18% of global GDP. That's a lot. However in China last digit is called underestimated. In Beijing believe that the total volume of the BRICS economies is 25% of the global total.

However, to our lot here we have only a few percent. And to increase this figure in the near future is unlikely to succeed economic growth in Russia has slowed. And with this problem, largely caused by the economic policies of the government, no one but us can not cope.

Victor Peasants


Tags: finances , BRICS

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