I think this is inevitable as having 10 or 20 countries stopping using the USD for trade would slowly impact the USD negatively and it would decline slowly over the next decade. Is this all part of the great reset that so many talk about or is this a spanner in the works they did not think was going to happen?
Today there was news that Egypt has submitted their application to be a member of BRICS and expect to see many more announcements before the BRICS summit in August. I cannot see the other countries rejecting Egypt considering Russia proposed they join earlier in the year.
India has reportedly offered Egypt a line of credit along with other Arabic nations stepping in to help an economy under huge pressure. Egypt has applied for loans with the IMF 4 times in the last 6 years and it looks like fellow BRICS countries are stepping up to their aid. Over recent years foreign investors have been pulling out their investments with over $20 billion having left the country.
What is important is that Egypt has the Suez Canal who was in direct competition with Putin's North Sea Route and you wonder why he was so keen for Egypt to join the new alliance. The Suez Canal is the gateway to the West with over 21 000 Vessels using the canal every year bringing in nearly $7 billion dollars annually. Will the tariffs be specified to be paid in the new BRICS currency whatever that might be later this year on next year. That is my hunch of why Putin wanted Egypt to join as it forces all the countries from the West to pay the fees in the new BRICS currency.
There has been reports that French President Macron has asked to attend the BRICS summit and you start to wonder if the rumors of France wanting to join are true or not or are they covering their bases. Does France really want to leave the EU and looking for other options as there is no smoke without fire.
The world economy is definitely changing its landscape and this will take some time before we understand the impact this all has on what we know as this is all new what is happening. You start to think this was all part of the big plan and has been bubbling away for years.
Through history reserve currencies do change as nothing is ever permanent and one would be foolish to think the Dollar will never be replaced as it has to at some point. The question is what currency will it be and how long can the Dollar fight off against the attack before it is no longer the reserve currency? All we have known is the Dollar used for world trade and this will have massive repercussions if successful as it is the start of the changing of the guard for a world super power. My wish is the States had some credible leadership for once as this is rather serious and you need a strong Government with strong relations which they haven't had for decades.