Latest news with #de-dollarization
Malay Mail
2 days ago
- Business
- Malay Mail
The strengths of Lula, Putin, Modi, Xi, and Ramaphosa at the East Asian Summit — Phar Kim Beng
AUGUST 9 — When Kuala Lumpur hosts the East Asian Summit (EAS) this October 2025, it will be more than just another multilateral gathering. For the first time in its history, all five leaders of BRICS—Luiz Inácio Lula da Silva, Vladimir Putin, Narendra Modi, Xi Jinping, and Cyril Ramaphosa—will be seated in the same plenary hall as US President Donald Trump. This is no ordinary convergence. These are leaders who, in one way or another, have felt the sting of Trump's tariffs, tirades, and transactional diplomacy. Yet, rather than retreat into silence, BRICS has responded with the idea of de-dollarization—a direct challenge to Washington's long-standing prerogative to define the rules of global trade and finance. This moment is pregnant with strategic possibilities. BRICS does not merely want a 'multipolar world' in the academic sense; it seeks to dismantle the uni-multipolar order where the United States retains disproportionate primacy, riding roughshod over allies and adversaries alike. Their counter-narrative is rooted in the belief that global power must be dispersed, not hoarded, and that the rules of engagement—whether in trade, diplomacy, or security—should be negotiated, not dictated. Prime Minister Anwar Ibrahim's own grand strategy, based on building what he calls a Dialogical Community, dovetails neatly with the aspirations of BRICS. While some in the West may dismiss the term as rhetorical flourish, its substance becomes clear when set against the backdrop of the past year. The world has wobbled over principles once considered sacrosanct: diplomacy, territorial integrity, the rule of law, most-favoured-nation treatment, reciprocity, and tariff stability. South Africa's Cyril Ramaphosa, China's Xi Jinping, India's Narendra Modi, Russia's Vladimir Putin and Brazil's Jair Bolsonaro at the BRICS summit in Brasilia in 2019. Excepting Bolsonaro, these BRICS leaders will be coming to Kuala Lumpur for the East Asia Summit in October 2025. — Reuters pic In each of these domains, Washington—under Trump—has taken an unorthodox approach, often punitive toward 'friends and foes alike, especially friends.' In such a context, Anwar's insistence on dialogue, reciprocity, and inclusive diplomacy does not appear naïve. Instead, it is a necessary corrective to a global order adrift. His role as Asean Chair in 2025, coupled with Malaysia's hosting of both the Asean–GCC Summit and the Asean–China Economic Summit earlier this year, positions Kuala Lumpur as a venue where world leaders can engage without the suffocating preconditions of bloc politics. For all the leaders of BRICS, this will be the first direct encounter with Trump since his return to the White House. The tensions are palpable. Trump has publicly threatened additional tariffs on any nation flirting with de-dollarization, yet the quiet accumulation of gold reserves by BRICS states—and recently by France and Germany—signals that the shift is already underway. Here, Europe's role is nuanced. France and Germany, though not Strategic Dialogue Partners of the EAS, are represented by the European Commission, led by Ursula von der Leyen. She has floated the idea of an EU–RCEP–CPTPP alignment to counter Trump's tariff regime, but execution has lagged behind rhetoric. Still, her presence ensures Europe will not be sidelined in KL. Trump's presence at the EAS is significant in three ways. First, it marks his return to a forum he last attended in 2017 under the presidency of Rodrigo Duterte. Second, it gives him a platform to engage directly with a bloc where most tariff disputes with the US have already been partially resolved—potentially allowing him to pivot toward new deals. Third, it places him in the same room as leaders whose economies are increasingly intertwined through South–South trade. Indeed, trade between Brazil, India, Indonesia, and China has grown by over 12–15 percent in recent years, underscoring the rise of alternative economic linkages that dilute US leverage. For Trump, the optics will be clear: America's post–World War II share of global GDP has shrunk from 46 percent to just 26 percent. The room he walks into in Kuala Lumpur is a different world from the one Washington dominated in the mid-20th century. Anwar's ability to host this gathering is not merely a product of his premiership. Long before becoming Prime Minister, he cultivated relationships with Lula and Ramaphosa as a prominent opposition leader, intellectual, and advocate for the Global South. These personal connections—rooted in shared values of social justice, anti-apartheid solidarity, and equitable development—now serve as diplomatic capital. It is this long arc of relationship-building that allows Anwar to position Malaysia as a bridge between the Global North and Global South, between the G7 and BRICS, between the US and China. The fact that Malaysia has also taken up the anti-genocide cause with vigour further strengthens its moral authority. And contrary to some assumptions, this is not necessarily a problem for Trump. The US President has himself publicly acknowledged that Gaza is facing serious starvation—a statement that opens the door for rare humanitarian convergence. Anwar, who frames his foreign policy in terms of human dignity and the sanctity of life, can use this to invite Trump into a joint effort on Gaza relief, showing that even adversaries on trade can be partners in humanity. What makes this scenario more plausible is that Anwar has already established a surprisingly warm rapport with Trump. Their first substantive phone call after Trump's return to the White House was marked by unexpected cordiality. Anwar, recognizing Trump's mercantilist instincts, did not attempt to lecture him on norms or moral imperatives. Instead, he couched Malaysia's proposals in the language of mutual benefit, a lexicon Trump understands and respects. The discussion reportedly touched on rolling back certain tariffs, ensuring semiconductor supply chain resilience, and Malaysia's potential role in mediating sensitive Middle Eastern issues where Trump still has personal channels. The Gaza humanitarian crisis was not avoided—it was addressed in pragmatic terms, with both leaders agreeing on the urgency of food and medical relief. Observers noted that the call lasted over half an hour—longer than Trump often grants to leaders with whom he has no immediate transactional gain. Anwar's deftness lay in presenting Malaysia not as a petitioner but as a strategic partner. By positioning himself as a leader who could help Trump achieve tangible outcomes—whether in trade, security, or humanitarian optics—he avoided the pitfalls that have tripped up others. There is, of course, the likelihood that BRICS leaders will use the EAS stage to make sharp, even stinging remarks about US unilateralism. The global media will be watching for signs of coordinated pushback. But seasoned statesmen like Lula, Putin, Modi, Xi, and Ramaphosa understand the dangers of escalation. A frontal rhetorical assault on Trump could invite further tariffs and sanctions. Anwar's role will be to create a diplomatic environment where grievances can be aired without crossing into irretrievable hostility. His history with BRICS leaders, and his measured relationship with Trump, put him in a position to choreograph a kind of 'strategic signalling'—asserting independence without closing the door to engagement. Informal pull-aside meetings in Kuala Lumpur may matter as much as the formal plenary. If Anwar can shepherd these interactions toward constructive dialogue, the October EAS could be remembered as the moment multipolarity moved from theory to practice. The summit may not resolve all disputes, but bringing all the key players to the same table—and framing the conversation around shared interests rather than irreconcilable differences—could leave a legacy beyond his term in office. In a world where power is fragmenting and alliances are fluid, the ability to convene is itself a form of power. In October 2025, Malaysia will wield it—not merely as host, but as conductor of a complex diplomatic orchestra. And in that music, there may yet be space for the rare harmony of a Trump—no matter how minute a chance—who recognises both the realities of multipolarity and the urgency of feeding the starving in Gaza now. Not October 2025. * Phar Kim Beng is professor of Asean Studies at the International Islamic University of Malaysia and director at the Institute of Internationalization and Asean Studies ** This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
Russia Today
01-08-2025
- Business
- Russia Today
Trump's onslaught: Why India and BRICS will not bend
US President Trump has rattled Washington's ties with New Delhi to an unexpected degree. Countries, including, India were prepared for rough diplomatic weather after Trump won his second term, but did not anticipate the kind of onslaught he has unleashed on the global system and diplomatic norms. Trump's latest attack on India and the BRICS countries explains this underlying dynamic. The BRICS aspire to play a greater political, economic and financial role in global affairs. This aspiration is based on shifts of economic and concomitant political and financial power towards the so-called emerging powers or middle-income countries. BRICS countries have already begun to use their national currencies in trading with each other as much as possible. The use of draconian financial sanctions on Russia by the West has accelerated this process. Today, almost all trade operations between Russia and China are conducted in rubles and yuan. India too is encouraging the use of its national currency in payment transactions with select countries. A significant portion of the trade between India and Russia is now settled using a rupee-ruble mechanism. Washington cannot use secondary sanctions to prevent countries, including India, from using the US dollar to trade with Russia and then oppose de-dollarization if these countries are compelled to use alternative payment mechanisms. If the US continues to weaponize the dollar, it will inevitably lead to the very 'de-dollarization' that Trump is concerned about. India has officially disowned any de-dollarization agenda – not the least because the US is its biggest trade partner in goods and services. India seeks more investments and technology transfers from the US. In many ways, New Delhi's ties with Washington are the most important for achieving its growth and developmental goals. But that does not preclude India from establishing other partnerships to reduce over-dependence on one country, balance its external relations and hedge against the excesses of US foreign policy. Trump has exacerbated the disruptions caused by Washington's frequent use of sanctions as a political weapon by also weaponizing tariffs. He is convinced that by imposing arbitrarily determined tariffs on imports from other countries he will compel them to enter into negotiations with the US to obtain relief by lowering their high tariffs on American products. But India on Wednesday sent a clear message: it is determined to protect the interests of its own businesses, farmers and people. Trump's use of tariffs as lever, like in the case of Brazil, where he has cited President Lula's treatment of his predecessor Bolsanaro as reason for imposing 50% levies, is being closely monitored by the world's governments. Trump has repeatedly targeted BRICS since his return to the Oval Office. He had threatened the countries with tariffs if they contonie to pledge to create a new common currency or support any alternative to the US dollar. Trump appeared to harbor the illusion that BRICS was 'dead' following his threats – which have now materialized into action. In reality, the BRICS summit held in Brazil this July showed no visible signs of intimidation. On the contrary, such overt displays of American economic coercion may well drive more countries toward alliances that seek to challenge the dominance of any single global power. The administration in Washington appears to lack realism in its assessment of global trends. Trump positions himself as a peacemaker and openly aspires to win a Nobel Peace Prize, while at the same time bombing Iran and assisting Israel in perpetuating the humanitarian crisis in Gaza. Similarly, threatening China as a BRICS member with 100% tariffs so casually – along with talk of bombing Beijing if the People's Republic were to invade Taiwan – makes little sense, especially given that an interim trade deal has already been reached and further negotiations are imminent. The US cannot reasonably claim that forums like BRICS have no right to determine their own agenda in pursuit of their shared interests. At the same time, the US has walked out of or subverted key international agreements and institutions. It has withdrawn from the Paris Climate Change agreement, the WHO, the UN Human Rights Commission and UNESCO. Trump seems to believe that these organizations cannot function or survive without the presence of the US and its financial contributions. In reality, the US will lose its voice and its leadership in these international forums. The space it vacates will be filled by others, especially China. Beijing has already carved out enormous influence in the UN institutions as it is now the second largest contributor to the UN. With Washington also bullying Europe and thereby damaging Western solidarity, the US absence from these organizations will have even less impact. The more the world learns to manage without the US in these international bodies, the more America's international influence will erode. These US decisions will also accelerate the dispersal of influence at the global level, as other centers of influence develop.
Yahoo
24-07-2025
- Business
- Yahoo
U.S. makes shocking move to counter China's de-dollarization push
U.S. makes shocking move to counter China's de-dollarization push originally appeared on TheStreet. President Donald Trump makes no secret of the fact that the U.S. is engaged in a geopolitical competition with China. While the U.S. is still the largest economy in the world, it is closely followed by the Asian superpower. When Trump initiated the global tariff war in April, it was clear the main target was China. However, the previous Joe Biden administration also engaged in a trade war with the country. Among the many concerns of the Trump administration is China's aggressive attempts to de-dollarize global trade in emerging markets where it holds is most manifest in China's Belt and Road Initiative (BRI) — also referred to as the New Silk Road — the ambitious infrastructure development project that aims to connect the country to the rest of the world. The Asian giant is increasingly encouraging trade settlements in digital renminbi or e-RMB, its central bank digital currency (CBDC). In fact, USD payments have declined from around 80% in 2010 to 40% in 2024, and RMB payments have risen from negligible in 2010 to around 55% in 2024, the Financial Times reported in August 2024 as it cited the State Administration of Foreign Exchange. To dethrone the U.S. dollar's dominance in global trade settlements, China is relying on RMB-based payments and bypassing USD-based SWIFT payment networks. Trump's 'genius' to challenge China's de-dollarization strategy On July 18, Trump signed the GENIUS Act into law to regulate stablecoins pegged to the USD. A stablecoin is a type of cryptocurrency that attempts to stabilize its value, unlike traditionally volatile cryptocurrencies such as Bitcoin, by being pegged to a traditional currency like the USD or a commodity like gold. The GENIUS Act only concerns itself with stablecoins pegged 1:1 to the USD. The Trump administration is aggressively promoting a digital assets economy, and stablecoins are a dominant stablecoins could also be a possible "counter-balance" to de-dollarization trends in emerging markets, as per a recent stablecoin report by the on-chain data analytics platform Messari. David Krause, Emeritus Professor, Finance Department, Marquette University, recently wrote in a paper that Messari cited: "The Trump administration's promotion of dollar-backed stablecoins represents a strategic effort to reinforce the dollar's global role amid increasing discussions on dedollarization." Trillions of dollars anticipated As per DeFiLlama, the total stablecoin market cap is $263 billion at the time of writing. Tether's USDT and Circle's (NYSE: CRCL) USDC account for more than 86% of the market share. Other coins like Trump-backed USD1, Ripple's RLUSD, and PayPal's PYUSD are also making inroads in the already growing market. Ripple CEO Brad Garlinghouse recently said many people think the stablecoin market will reach $1 trillion-$2 trillion in "a handful of years." However, it is yet to be seen if it will grow enough to challenge China's attempts to de-dollarize the global economy. U.S. makes shocking move to counter China's de-dollarization push first appeared on TheStreet on Jul 23, 2025 This story was originally reported by TheStreet on Jul 23, 2025, where it first appeared.
Coin Geek
09-07-2025
- Business
- Coin Geek
Xi Jinping no-show at BRICS Summit: A silent power play?
Getting your Trinity Audio player ready... Optics matter in geopolitics, and when the president of the driving engine in the BRICS alliance is missing from a key summit in Brazil, it speaks volumes. When China announced that Premier Li Qiang would attend the Rio BRICS Summit in place of Xi Jinping, speculation exploded. I've read opinion pieces claiming there has been an internal coup, that the move signals China's confidence in its ability to run BRICS from behind the scenes, or that China is facing domestic issues more severe than it lets on. Given China's opaque nature, it's unlikely we'll get a straight answer anytime soon. Instead, let us look at what the move may mean from the perspective of China's long-term goals, the digital yuan, and de-dollarization. The silent treatment—is Xi sending BRICS a message? When it comes to China, what's not said matters just as much as what is. Macro investor Ray Dalio characterized the Chinese government's behavior as that of a 'strict parent,' saying: 'As a top-down country … they behave like a strict parent, and they go through that. That is their approach, we have our approach.' – Ray Dalio China has been clear about its goals: multipolarity and a global rebalancing of power, de-dollarization and financial sovereignty, reform of global governance, securing energy supplies and access to strategic resources, and promoting Chinese tech and infrastructure standards. Given the lack of meaningful progress toward de-dollarization within the bloc and the jitteriness of members as the United States counters China's moves and issues ultimatums, Xi's absence in Rio could be interpreted as quiet displeasure. Of course, China must walk the diplomatic tightrope like everyone else. It can't afford to disengage from BRICS or alienate its members, which would only hurt its long-term goals. However, it can signal frustration and subtly pressure members to move forward with the agenda. De-dollarization and the BRICS currency—what is the goal? At the last annual BRICS Summit in Kazan, Russian President Vladimir Putin called a BRICS currency 'premature.' However, that doesn't mean it's off the table, and it doesn't mean the alliance will fold and continue to use the USD indefinitely. At the Kazan Summit, member states agreed to use national currencies in internal trade. This would mean that BRICS phases out the USD and Western payment systems, such as SWIFT, in trade within the bloc. Essentially, this would cut the USD out of meaningful use in countries worth an estimated 40% of global gross domestic product (GDP) in purchasing power parity (PPP) terms, and nations containing over half the world's population would slowly cease to use the USD as a reserve currency. The effects on the USD and interest rates on U.S. debt would be measurable. I've previously written about how there's no realistic alternative to the USD in the short term, but China is playing the long game. Undermining U.S. dominance in the Global South may take decades, but as the old saying goes, a journey of a thousand miles begins with a single step. All the pieces are in place already; China's digital yuan is live, its Belt and Road Initiative (BRI) may have been scaled back, but it still has agreements with 150 countries, and loans from the BRICS New Development Bank are increasingly seen as favorable to terms offered by the International Monetary Fund (IMF) and World Bank. Putting all of this together, the picture becomes clear: China sees itself as the future leader of Asia-Pacific at a minimum, and its currency, payment rails, banks, and institutions are important tools in achieving that goal. Uncle Sam isn't happy, and he's making that clear Geopolitics is a cut-throat game of thrones, and naturally, when the current king senses a threat, he responds. Since the days when America could rely on unrivaled power, Hollywood propaganda, and global willingness to commit to democracy and liberty are long gone, the U.S. has increasingly resorted to overt pressure tactics. The re-election of Donald Trump made it clear that the status quo is over, and Uncle Sam intends to renegotiate every deal, including trade deals with allies, and it doesn't mind using a heavy hand to further its interests. Under Trump's watch, sanctions, tariffs, and talks are on one day and off the next. Anyone seen as friendly with China is a potential target of America's ire. The 47th President has made it clear that any attempts to move off the dollar standard will never be allowed. During the Rio summit, he announced an additional 10% tariffs on BRICS-aligned nations. The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they… — Donald J. Trump (@realDonaldTrump) November 30, 2024 Naturally, this has slowed China's progress toward its goals. There has been no serious movement toward de-dollarization or the uptake of the digital yuan. India has signed deals with the U.S. and the United Kingdom and resumed talks with the European Union and Israel. Meanwhile, China's economy is showing some signs of stress. With all of this, it's little surprise that China is unhappy with its fellow BRICS members, and thus, it shouldn't be surprising that Xi has sent a silent message with his absence at the Rio summit. In the great game of global power, not every ultimatum needs to be spoken. Sometimes, the most powerful messages are delivered in silence. Watch | From BRICS to Blockchain: How Global Trade and Digital Currencies Are Evolving title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Yahoo
06-07-2025
- Business
- Yahoo
J.P. Morgan: 3 Reasons the US Dollar Is Losing Value — and Why It Might Be Good for Your Wallet
The U.S. dollar has long been recognized as an important currency around the world, but there have been growing concerns this year that it may be losing value. Be Aware: Read Next: According to J.P. Morgan, 'The U.S. dollar is the world's primary reserve currency, and it is also the most widely used currency for trade and other international transactions. However, its hegemony has come into question in recent times due to geopolitical and geostrategic shifts.' Specifically, J.P. Morgan noted a few reasons the U.S. dollar is losing value. It pointed to the following reasons for de-dollarization, which is the significant reduction in the use of the dollar in world trade and money transactions: In the commodities space, energy transactions are more often being priced in non-USD currencies. U.S. banks are not being involved in new payment systems used for cross-border deals. The USD's share of FX reserves, a commonly used barometer of dollar importance, has decreased. I'm a Financial Advisor: Some financial experts who talked to GOBankingRates said there are a few ways the U.S. dollar losing value may be a good thing for the average American's wallet. Annie Cole, EdD, money coach and founder of Money Essentials for Women, said to think about it this way: Imagine the U.S. dollar is tied equally with the European currency — the euro. Suddenly, the U.S. dollar weakens, making European businesses more likely to look to buy American goods over European goods. Cole said this kickstarts a cycle of foreign countries buying American goods, injecting the American economy with outside cash, potentially creating increased demand for American goods and perhaps creating more American jobs. According to Andrew Lokenauth, money expert and owner of BeFluentInFinance, 'Here's what I tell my clients — a weaker dollar typically means stronger stock market returns. My portfolio analysis shows that when the dollar drops 10%, multinational companies in the S&P 500 often see earnings jump 15 to 20% due to overseas revenue conversion.' Finally, Lokenauth added that inflation from a weakening dollar can benefit homeowners with fixed-rate mortgages. According to him, a 5% annual inflation rate essentially gives a homeowner a 5% discount on their mortgage balance in real terms. More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 5 Types of Cars Retirees Should Stay Away From Buying 10 Unreliable SUVs To Stay Away From Buying This article originally appeared on J.P. Morgan: 3 Reasons the US Dollar Is Losing Value — and Why It Might Be Good for Your Wallet Sign in to access your portfolio
