Reply to thread

Message: <blockquote data-quote="Truth Hurts" data-source="post: 28007948" data-attributes="member: 477372"><h2>The Financial World Splits in Half: Alternative Payment Rails, Stockpiling Gold, and the Clash of a Robust Dollar and Ruble</h2>The strengthening of the BRICS nations has been going on well before the conflict in Ukraine began. For instance, in 2014, Russia fully developed the System for Transfer of Financial Messages (<a href="http://www.cbr.ru/psystem/mes/" target="_blank">SPFS</a>), and later the <a href="https://en.wikipedia.org/wiki/Mir_(payment_system)" target="_blank">Mir</a> payment system was launched. That same year, in response to the annexation of Crimea, started to stockpile gold in vast amounts.<img src="https://static.news.bitcoin.com/wp-content/uploads/2022/07/social-media-financial-messages-1.png" alt="Targeting the US Dollar’s Hegemony: Russia, China, and BRICS Nations Plan to Craft a New International Reserve Currency" class="fr-fic fr-dii fr-draggable " style="" />Financial messages using SPFS have increased a great deal over the years alongside the use of CIPS and the Mir payment system.China has been hoarding <a href="https://moneyweek.com/investments/commodities/gold/603131/how-much-gold-does-china-own" target="_blank">massive amounts of gold</a> as well, as both countries hiked their <a href="https://www.marketwatch.com/story/watch-out-america-china-and-russia-are-stockpiling-gold-2019-07-29" target="_blank">gold reserve purchases</a> a great deal a few years before the war. Russian banks also joined the China International Payments System (CIPS) making it easier for the two countries to trade. In April last year, China opened its borders to billions of dollars of gold imports, according to a <a href="https://www.reuters.com/world/china/exclusive-china-opens-its-borders-billions-dollars-gold-imports-sources-2021-04-16/" target="_blank">report</a> from Reuters.<img src="https://static.news.bitcoin.com/wp-content/uploads/2022/07/central-bank-buying-sloed-04292021-.png" alt="Targeting the US Dollar’s Hegemony: Russia, China, and BRICS Nations Plan to Craft a New International Reserve Currency" class="fr-fic fr-dii fr-draggable " style="" />Both China and Russia have been stockpiling gold over the last few years.Since World War I, the U.S. dollar has been the <a href="https://news.bitcoin.com/the-50th-anniversary-of-nixon-shock-how-suspending-the-dollars-convertibility-with-gold-fueled-todays-fiat-world/" target="_blank">world’s global reserve currency</a> and America emerged as the largest international creditor. Fast forward to today, and the dollar is booming against a number of other currencies, and the USD is the most robust it has been in an entire generation. The <a href="https://www.tradingview.com/symbols/TVC-DXY/" target="_blank">U.S. dollar currency index (DXY)</a> gained over 10% this year and outpaced strong currencies like the Japanese yen.Just recently, the <a href="https://news.bitcoin.com/euro-reaches-parity-against-the-us-dollar-while-the-usd-index-taps-a-20-year-high/" target="_blank">euro met parity with the dollar,</a> and other currencies like the Indian rupee, Polish zloty, Colombian peso, and the South African rand have faltered against the greenback in recent times. However, the Russian ruble has been a <a href="https://news.bitcoin.com/american-economists-are-baffled-by-an-unusual-situation-as-russias-ruble-is-the-worlds-best-performing-fiat-currency/" target="_blank">strong competitor</a> to the dollar this year and has been one of the <a href="https://news.bitcoin.com/russian-ruble-taps-7-year-high-against-the-us-dollar-economist-says-dont-ignore-the-exchange-rate/" target="_blank">best-performing fiat currencies</a> in 2022.With inflation soaring and interest rates <a href="https://news.bitcoin.com/analysts-suspect-the-fed-will-bump-federal-funds-rate-by-75-bps-next-week-others-predict-the-biggest-hike-in-decades/" target="_blank">getting hiked</a> by the Federal Reserve, Kamakshya Trivedi, the co-head of a market research group at <a href="https://news.bitcoin.com/goldman-sachs-downgrades-coinbase-to-sell-rating-analyst-says-firm-needs-to-make-cost-base-reductions/" target="_blank">Goldman Sachs</a> stressed that it’s been a “pretty tough mix” to deal with. Despite the uncertainty, the analyst at Goldman Sachs thinks the dollar, at least for now, will remain robust. But in comparison to the greenback’s recent spike in value, most of that rise is in the past, Trivedi <a href="https://www.nytimes.com/interactive/2022/07/16/business/strong-dollar.html" target="_blank">remarked</a>.“For now, we still expect the dollar to trade on the front foot,” Trivedi wrote on July 16. “There might be a bit more to go, but probably the largest part of the dollar move may well be behind us.”<a href="https://news.bitcoin.com/targeting-the-us-dollars-hegemony-russia-china-and-brics-nations-plan-to-craft-a-new-international-reserve-currency/" target="_blank">https://news.bitcoin.com/targeting-the-us-dollars-hegemony-russia-china-and-brics-nations-plan-to-craft-a-new-international-reserve-currency/</a></blockquote>

Verification: Hath warak paha keeyada? (hatha wadikireema paha)

Top Bottom