UNDERSTAND THE CREATION OF IMF AND WB in the 50s : Mysterious BRICS Banknote Explained: End of Dollar on the Horizon?

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the concept of a bricks currency has

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been discussed within the block for

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several years however as the alliance

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expands and economic pressures intensify

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talk of a common brics currency has

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gained new momentum recently at The

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brics Summit in Kazan multiple images

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were released by the official brics

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website showing a symbolic currency note

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being presented to the president of

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Russia in his role as the current bricks

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chair this imagery has fueled

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speculation about the future of a

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potential unified currency whether in

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the form of a new brick specific note

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the UN as a common currency or another

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medium designed to reduce Reliance on

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the US dollar as a global Reserve

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currency before exploring the details of

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the proposed bank note and its

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significance it's important to examine

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why brics nations are seeking

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alternatives to the dollar this drive is

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motivated by both economic and political

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considerations as member countries aim

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to Shield themselves from external

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dollar based fluctuations strengthen

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trade links within the block and assert

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greater control over their financial

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policies in a multi-polar global

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economy the US Dollar's role as the

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dominant Reserve currency has deep roots

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in post wedu 2 economic restructuring

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particularly due to the Breton Woods

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Conference of

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1944 this pivotal event not only

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established the dollar as a central

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currency but also created two

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institutions the inter international

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monetary fund IMF and the World Bank to

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promote stability in exchange rates and

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financial recovery key economists John

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mayard kees and Harry Dexter white

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designed the system with complimentary

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yet differing Visions kees pushed for a

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new international currency the bankor

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while white proposed a dollar Centric

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system with gold convertibility

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ultimately the latter became the

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foundation of the bretonwood system

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pegging Global currencies to the dollar

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which was fixed at $35 per ounce of gold

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the dollar gained further strength in

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the 1950s as International Trade surged

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and US economic stability attracted

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Reserve currency Investments by 1958 the

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Breton wood system was fully operational

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enabling countries to settle

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International transactions in

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dollars yet the system faced challenges

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by the 1960s us deficits and gold

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outflows strained its gold reserves and

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Rising inflation put additional pressure

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on the dollar in response President

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Nixon in 1971 ended the Dollar's gold

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convertibility transforming the dollar

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into a floating fiat currency despite

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these shifts the dollar centrality

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remained unchallenged due to global

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Reliance on it for trade and

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stability however recent geopolitical

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shifts and economic strategies have led

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the brics Nations to explore creating a

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currency that could enhance trade

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efficiency and reduce Reliance on the

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dollar especially in the face of

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economic sanctions and trade imbalances

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that dis proportionately affect some

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member states such as Russia and

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China in recent years bricks economies

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have surpassed the G7 in terms of GDP

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based on purchasing power parity now

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representing over 31% of global GDP a

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significant influence on the world

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economy these countries also constitute

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around 16% of global trade and Encompass

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over 40% of the world's population this

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economic clout has emboldened bricks to

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take steps toward D dollar

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ization for instance recent agreements

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between China and Brazil have enabled

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direct trade in local currencies

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removing the dollar as an intermediary

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and thereby reducing transaction costs

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and currency exchange risks the

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potential advantages of a brics currency

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include simplified crossb transactions

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within the block and an increase in

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economic self-sufficiency which aligns

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with the broader trend of

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dollarization this move is underscored

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by steps already taken by bricks

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countries to trade in their local

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currencies with agreements in place for

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bilateral trade between China and Russia

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Brazil and China and India and

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Russia let's take a quick pause could

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feedback in the comments your engagement

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helps us grow thank

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you a bricks currency could take shape

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either as a single currency or or is a

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digital currency unit tied to the

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economic contributions of each member

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Nation resembling the international

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monetary fund's special drawing rights

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or SDR as a weighted currency basket the

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idea of anchoring this currency to gold

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or other assets is still under debate

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some advocate for gold backing to

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provide stability While others suggest

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that a currency without such ties could

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maintain

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flexibility brics Nations aim to

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increase economic independence by

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avoiding dollar Centric Global financial

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institutions which they view as favoring

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Western interests heavy Reliance on the

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dollar for international trade can make

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these economies vulnerable to US policy

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changes and sanctions as seen with

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Russia's exclusion from Swift and other

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sanctions related to the Ukraine

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conflict by promoting trade in local

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currencies or creating a bricks currency

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these countries hope to enhance their

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economic autonomy crossb trade within

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bricks would be more streamlined if

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conducted in local or a shared brics

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currency reducing costs and risks

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associated with currency exchange

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fluctuations a move away from the dollar

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could simplify transactions particularly

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as intra bricks trade continues to grow

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in recent years bilateral trade

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agreements between brics countries like

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China Russia and India Russia in local

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currencies have demonstrated the

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benefits of dollar independent

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transactions globally the Dollar's

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dominance can lead to US influence over

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financial markets and economic policies

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worldwide

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dollarization reducing dependence on the

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US dollar allows bricks to foster a

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multi-polar financial system where

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economic power is more equitably

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distributed this would also give

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emerging economies a larger voice in

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global financial decisions something the

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bricks countries argue is overdue in a

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multi-polar

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world Rising tensions between the US and

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certain bricks members particularly

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Russia and China have motivated these

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countries to see Alternatives this

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diversification is seen as a hedge

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against potential future economic

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sanctions and trade restrictions by the

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US and its allies the broader bricks

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alliance with expanding interest from

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countries like Saudi Arabia and Iran can

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further reduce Reliance on Western

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controlled financial institutions like

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the international monetary fund and

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World Bank as emerging economies brics

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Nations argue that relying on the dollar

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exposes them to instability from us

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domestic economic policies such as

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fluctuations caused by federal Reser res

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ve decisions when the US increases

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interest rates for example bricks

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Nations often see higher debt servicing

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costs and inflationary pressure reducing

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dollar Reliance could thus bring more

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stability to their own financial markets

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let's go over everything we know about

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the brick bank note so far the following

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information is mainly taken from Sputnik

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which is a Russian state-owned news

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agency and radio broadcast

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service in the Russian town of kirac

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Vladimir region 1,000 commemorative

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notes with a face value of 100 bricks

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were produced ahead of the 2023 brick

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Summit in Johannesburg South Africa

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during a recent Summit in Kazan Russia

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President Vladimir Putin received one of

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these symbolic Bank notes Kremlin

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spokesperson Dimitri pesov referred to

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it as quasi money underscoring that it

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represents the collaborative Spirit

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among brics nations the front side of

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the note highlights National symbols and

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flags of the five founding brics

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countries Brazil Russia India China and

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South Africa on the reverse side it

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features the flags and names of

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additional Nations associated with

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bricks Egypt Ethiopia Iran and the UAE

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along with other potential allies each

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illustration on the note was

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meticulously handdrawn the initiative

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for the bank note came from yevan

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fyodorov the founder and owner of kirak

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typography JSC who designed it as a gift

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to convey his support for the goals of

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bricks such as International cooperation

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and a multi Global framework fiodorov

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explained that the arrangement of the

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flags in a circular pattern on the front

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symbolizes the idea of equality among

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bricks members he described the note as

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both a concept model and a symbol of an

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emerging multi-polar World noting that

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meaningful changes often begin with

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symbolic gestures additionally he

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assured that the brics note includes

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sophisticated anti-counterfeiting

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features much like standard Russian

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banknotes fiodorov also praised the

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designer Yuri Yakov known for his

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involvement in creating currency for

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over 10 Nations Yakov previously crafted

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portraits for Iraq's currency under

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Saddam Hussein and for Vietnam's former

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leader hoi Min on the Vietnamese Dong

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President Putin however clarified that

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while the idea of a shared bricks

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currency has been discussed there are no

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immediate plans for such a development

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highlighting the need for a cautious

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approach that's all for this video thank

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you for watching this video we sincerely

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