17:05 - 18.09.2024

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September 18, Fineko/abc.az. At the BRICS Summit to be held in Kazan on October 22-24, a roadmap may be unveiled to develop an alternative to the current global financial system based on the US dollar.

ABC.AZ reports that according to analysts, speech can be about a multi-currency payment platform. The launch of the BRICS gold-backed trading currency is also possible," Asia Times states.

The emergence of an alternative to the current dollar system will have historical significance. This will be the first serious attempt to go beyond the Bretton Woods Agreement of 1944, which outlined the contours of the post-war global financial system

The Bretton Woods system cracked in 1971, when President Richard Nixon unpegged the dollar from gold. Freed from the constraints of the gold standard, the U.S. government has dropped financial discipline. From 1971 to 2024, the U.S. national debt grew from $400 billion to $35 trillion

Today, public debt servicing has become the largest item in the U.S. national budget, and more and more prominent economists and heads of companies are sounding the alarm. The U.S. may be left without creditors willing to buy up their debt

The BRICS may decide to launch a currency unit partially backed by gold and natural resources - in particular, oil, minerals and metals. The group has significant leverage, given that it controls a significant portion of the planet's minerals - enough to dictate global prices

"One of the signs that the BRICS is preparing for such a financial reset is the unprecedented accumulation of gold. Over the past two years, BRICS members have been buying gold at a record pace. Historically, it was this precious metal that was used to recalibrate currencies after a financial or monetary crisis," Asia Times concludes.