KAZI ABUL MONSUR#
A few countries have stepped up to reduce the dominance of the global dollar. It can be said that the activity of these countries is not as strong as before. China and Brazil have taken policy decisions to control the dominance and influence of the dollar as an international currency. In particular, China and Brazil have taken new steps to reject the dominance of the dollar in the ongoing import and export trade between the two countries. The central banks of China and Brazil have reached an agreement to trade in their own currencies, eschewing dollar transactions.
Meanwhile, according to a report on foreign exchange reserves published by the Central Bank of Brazil, China’s currency has replaced the yuan as the second most important currency in Brazil’s foreign exchange reserves. At the end of February 2023, Brazil’s foreign exchange reserves were $297.3 billion and China’s total foreign exchange reserves were $3133.2 billion.
At the end of December 2022, the US dollar accounted for 80.4% of Brazil’s foreign exchange reserves, the Chinese yuan accounted for 5.37% and the European Union currency the euro accounted for 4.74%. Slowly but surely, the red giant China’s own currency, the yuan, has begun to expand its influence in the international arena. Currently, along with Brazil, Russia has also agreed to trade with China in its own domestic currency for import and export trade.
Moreover, China has started using the yuan currency in its inter-trade transactions with Saudi Arabia, the United Arab Emirates and Israel. Moreover, many countries around the world have started stockpiling the Chinese currency yuan in addition to the dollar in terms of foreign exchange reserves. In early 2023, the People’s Bank of China and the Central Bank of Brazil signed a memorandum of cooperation to establish an inter-currency clearing system to promote bilateral trade and investment.
Meanwhile, India’s own currency, the rupee, is showing its strong position in the international arena. Especially Botswana, Fiji, Germany, Guyana, Israel, Kenya, Malaysia, Mauritius, Myanmar, New Zealand, Oman, Russia, Seychelles, Singapore, Sri Lanka, Tanzania, Uganda, England and some other countries have expressed interest in doing business in rupees in terms of inter-trade transactions.
However, in any case, the currency of one country, which currently dominates international trade and transactions around the world, remains a major obstacle to global peace and stability. Especially in the mid-nineteenth and mid-twentieth centuries, the British currency, the pound, ruled the world.
Which is currently the currency of the US dollar and in the future some other country’s currency may rule. However, instead of bringing the currency of only one country as a single standard for international transactions, experts believe that the free circulation of at least 5 strong currencies as international currencies should be ensured.#
KAZI ABUL MONSUR#