China, Russia Leading Push to Replace US Dollar as World’s Reserve Currency

• China, Russia Leading Push to Replace US Dollar as World’s Reserve Currency
  by Andrew Moran, https://www.theepochtimes.com/
  Is the world challenging the U.S. dollar’s dominance?
  Over the last decade, several nations worldwide, led primarily by Russia and China, have ramped up efforts to kick their dependence on the chief international reserve currency. From diminishing the prevalence of non-dollar transactions to reducing dollar holdings in foreign exchange reserves, states are employing measures to erode the buck’s influence in worldwide trade.
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  Jim O’Neill, a former chief economist at Goldman Sachs, suggested that the BRICS (Brazil, Russia, India, China, and South Africa) bloc should expand its presence and enhance the alliance’s work to threaten the greenback hegemony in global financial markets.
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  Writing in a March 26 paper in the Global Policy Journal, O’Neill championed adding new members to the group to bolster its objectives if these countries meet the initial criteria of maintaining large populations and have promising economies.
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  “The U.S. dollar plays a far too dominant role in global finance,” O’Neill wrote. “Whenever the Federal Reserve Board has embarked on periods of monetary tightening, or the opposite, loosening, the consequences on the value of the dollar and the knock-on effects have been dramatic.”
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  If the BRICS pact grows, it could facilitate the emergence of a multi-currency global financial system, he added. Russia’s Deputy Chairman of the State Duma Alexander Babakov championed the proposal of the BRICS partnership producing its own currency.
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  “Its composition should be based on inducting new monetary ties established on a strategy that does not defend the U.S.’s dollar or euro, but rather forms a new currency competent of benefiting our shared objectives,” he recently told the St. Petersburg International Economic Forum event in New Delhi, India.
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