FROM BOOM FINANCE

The trend to multipolarity in trade settlements continues within the BRICS group of nations and other associated nations. BOOM has often stated that this process will take 50 – 100 years to resolve US Dollar dominance in most international trade and capital settlements. In the fullness of time, that timeframe estimate may prove to be excessive.

On 19th December, the Russian Prime Minister Mikhail Mishustin announced that Western currencies have been almost completely phased out in Russia-China trade settlements. He said that nearly all payments between the countries are now carried out using Rubles and Yuan. This was a noteworthy statement, indicating a more rapid transition than expected.

The Russian PM was visiting Beijing to meet Li Qiang, the current Premier of China.

“We continue to increase the share of national currencies in mutual settlements. If in 2020 this figure was about 20%, then this year we have actually completely gotten rid of the currencies of third countries in mutual settlements,” Mishustin stated.

That statement indicates that full transition to multipolarity between those two nations has only taken 3 years.

India is a founding BRICS partner. They will be watching these developments closely. If they were to increase trade with China and Russia and settle those trades using Chinese Yuan, Russian Rubles and Indian Rupees, then over 3 Billion people could benefit from the trend to multipolarity. China, India, Russia, Brazil and South Africa (the original BRICS) make up 40 % of the global population.

BOOM will have to review the 50 – 100 year forecast on a regular basis.