Dedollarisation and its implications.

[toyolink]

The BRICS initiatives are well on the way and very little is being discussed on the impact this will have on countries like T&T. Considering that our reserves are held in US$ and our currency is pegged to US$ the new geopolitical war may
mean serious consequences are on the horizon and no strategic planning seems to be on the agenda.
We seem to be asleep at the wheel.

[i_code_and_stuff]

Because it's probably not a big deal? People have been saying this is going to kill the USD dominance for a very long time now, and it hasn't happened, and it's even less likely now due to:

1. everyone in the developed world hates Russia now and has no trust in them due to the invasion
2. large manufacturing chains have been moving away from China due to what happened during covid

Added to that, even if none of those things happened, making a dent in the USD's dominance as a reserve currency is a logistical nightmare that no one wants to put up with at the end of the day, and was always unlikely to happen unless:

1. something truly, truly disastrous happens in the US economy, combined with...
2. the military might of the US and NATO diminishing to an extreme degree

[Dizzy28]

The BRICS initiatives are well on the way and very little is being discussed on the impact this will have on countries like T&T. Considering that our reserves are held in US$ and our currency is pegged to US$ the new geopolitical war may
mean serious consequences are on the horizon and no strategic planning seems to be on the agenda.
We seem to be asleep at the wheel.

Our trade balance is so significantly skewed to the US on both the import and export side moving away from the dollar at this point makes no sense. The US is our largest export market accounting for 37% of total exports whilst China is 7th at a mere 3% of total exports.

On imports the disparity is even bigger. The US is our largest import source at 42% of total imports and China is 2nd but only contributes 9% of our total imports.

Edit: Now realized I put 2019 data. In 2021 the year of most recent trade data the US was 40% of Exports and China was not even in the top 10 export markets.
On imports US was 35% and China was 2nd at 11%

[toyolink]

Based on the information about what this shift in global dependence on US$ is about, it appears to me that the risk to our financial well being, may well arise from circumstances other than our direct trade ties.
One inescapable risk may well be the value of our reserves, if the US$ is unable to sustain its value dominance globally.
This deviation from the Bretton Woods Agreement which was put into place after WWII does change the order of things.

[maj. tom]

Geolocation in global economics is also important. If we were in that region with China, this would be more serious. But we trade more with USA due to location and even enjoy their superpower military security in the region. We have tied a lot of our cultural identity too with USA, citizens travel more to USA than China, spend money on US goods, foods, shipping, etc.

Devaluation of the TT dollar based on USA Forex due to the values of our imports and exports should be a more concerning issue for citizen awareness than Dedollarization.

[Duane 3NE 2NR]

While I don't think BRICS in its current form will have the impact that was suggested, the US and by extension all of us to some degree are facing the possibility of rough and uncertain times ahead.
Big cities in the US are experiencing an exodus. But not everyone can afford to dodge the bullet. Throw in the instability that may arise from the gradual de-dollarisation of areas of global trade; internal social and political instability, the repercussions of the war in Ukraine; conflict with China and the shifting alliances e.g. with Saudia Arabia, and possible expansion/evolution if BRICS we are living in "interesting" times. And we're not even talking about our own local-level economic challenges here.

[toyolink]

No question about it we are living in times of great peril, the question remains 'is there anything we can do to mitigate our exposure?'.

[pugboy]

if demand for us dollars drops
the ol technique of uncle sam printing more money when they hitting too much debt might backfire since there won’t be as much demand for that paper they just printed
usd value could drop, usd debt holders like china will start being reluctant in the future

[redmanjp]

would any of this affect local housing prices? might be looking to buy a house in the next year but could put it off if the value might drop.

[Dizzy28]

would any of this affect local housing prices? might be looking to buy a house in the next year but could put it off if the value might drop.

The housing market is probably a function of black money more than anything else.

[redmanjp]

No question about it we are living in times of great peril, the question remains 'is there anything we can do to mitigate our exposure?'.

ppl say buy gold - that will retain its value

[Duane 3NE 2NR]

would any of this affect local housing prices? might be looking to buy a house in the next year but could put it off if the value might drop.

T&T are small islands with limited land space and with rising crime even fewer options for safe places to live - housing and land prices not going down in favourable areas

[triniterribletim]

Time to start trading more with Brazil. There are many commodities that I am sure could be sourced from Brazilian suppliers at prices that are cheaper than what US suppliers are offering. Foodstuffs, medicine, electronics and manufactured goods/light machinery. Tying yourself to the US and US suppliers when inflation there is at an all time high and cost of living there is rising is only a sure way to get yourself swept up in the tide. The US keeps printing money and we all know what happens when they can't back it up any longer. Especially if they get drawn into a war over Ukraine or Taiwan.

[Cantmis]

Petrodollar

[The_Honourable]

Interesting infographic

[Dohplaydat]

[paid_influencer]

how does de-risking play into this

[bluefete]

[The_Honourable]

BRICS Tries to Ride on the Dedollarisation Wave

Europe has the euro. The Japanese Yen and Pound Sterling, along with China's Yuan complete the club of world's powerful currencies. The BRICS is seriously considering the development of a new currency to challenge the US Dollar's hegemony. Such a move could severely reduce the USA's influence over emerging economies.

[sMASH]

If thst vid said brics has 25% of world gdp, then the USd is not doomed.
It will merely drop in value by that amount, as thst amount of value gets traded outside of the USd.


The problem is, our economy is sinking, so our dollar is losing value. Snd the usd is losing value cause the nonsense biden doing.
And when brics start to rsmp up influence, usd gonna drop in vslue more.
So, our purchasing power eill decline by multiple factors.

U might hsdda pay 40 for s sandwich loaf.

[shaneelal]

May assist BRICS.


Saudi Arabia's petro-dollar exit: A global finance paradigm shift

The financial world is bracing for a significant upheaval following Saudi Arabia's decision not to renew its 50-year petro-dollar deal with the United States, which expired on Sunday, 9 June, 2024.

The lapsed security agreement - signed by the United States and Saudi Arabia on 8 June 1974 - establishes two joint commissions, one on economic co-operation and the other on Saudi Arabia's military needs, and was said to have heralded an era of increasingly close co-operation between the two countries.

American officials at the time expressed optimism that the deal would motivate Saudi Arabia to ramp up its oil production. They also envisioned it as a blueprint for fostering economic collaboration between Washington and other Arab countries.

The crucial decision to not renew the contract enables Saudi Arabia to sell oil and other goods in multiple currencies, including the Chinese RMB, Euros, Yen, and Yuan, instead of exclusively in US dollars. Additionally, the potential use of digital currencies like Bitcoin may also be considered.

https://www.bizcommunity.com/article/sa ... ft-670911a

Edit - May not be accurate news, other sources indicates there wasn't a formal agreement.

[SuperiorMan]

May assist BRICS.


Saudi Arabia's petro-dollar exit: A global finance paradigm shift

The financial world is bracing for a significant upheaval following Saudi Arabia's decision not to renew its 50-year petro-dollar deal with the United States, which expired on Sunday, 9 June, 2024.

The lapsed security agreement - signed by the United States and Saudi Arabia on 8 June 1974 - establishes two joint commissions, one on economic co-operation and the other on Saudi Arabia's military needs, and was said to have heralded an era of increasingly close co-operation between the two countries.

American officials at the time expressed optimism that the deal would motivate Saudi Arabia to ramp up its oil production. They also envisioned it as a blueprint for fostering economic collaboration between Washington and other Arab countries.

The crucial decision to not renew the contract enables Saudi Arabia to sell oil and other goods in multiple currencies, including the Chinese RMB, Euros, Yen, and Yuan, instead of exclusively in US dollars. Additionally, the potential use of digital currencies like Bitcoin may also be considered.

https://www.bizcommunity.com/article/sa ... ft-670911a

Was there actually any such signed agreement? like is there anything like this from an actual reputable source?

[shaneelal]

^Another article
U.S.-Saudi Petrodollar Pact Ends after 50 Years
https://www.nasdaq.com/articles/us-saud ... r-50-years


nasdaq.com domain owned by
Registrant Organization: The Nasdaq Stock Market, Inc.

Edit - May not be accurate news, other sources indicates there wasn't a formal agreement.

[sMASH]

World wars will make up for that

[SuperiorMan]

^Another article
U.S.-Saudi Petrodollar Pact Ends after 50 Years
https://www.nasdaq.com/articles/us-saud ... r-50-years


nasdaq.com domain owned by
Registrant Organization: The Nasdaq Stock Market, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

I'm wondering why somewhere like AP or Reuters or at least someone reputable didn't publish something like this or ever id about the pact.

[88sins]

^Another article
U.S.-Saudi Petrodollar Pact Ends after 50 Years
https://www.nasdaq.com/articles/us-saud ... r-50-years


nasdaq.com domain owned by
Registrant Organization: The Nasdaq Stock Market, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

I'm wondering why somewhere like AP or Reuters or at least someone reputable didn't publish something like this or ever id about the pact.

Not all media organizations are as unbiased and objective as they would have you believe.

Regarding global de-dollarization, between Blackrock, Vanguard, and the USA, there's going to be a lot of resistance to that happening.

[shaneelal]

^Another article
U.S.-Saudi Petrodollar Pact Ends after 50 Years
https://www.nasdaq.com/articles/us-saud ... r-50-years


nasdaq.com domain owned by
Registrant Organization: The Nasdaq Stock Market, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

I'm wondering why somewhere like AP or Reuters or at least someone reputable didn't publish something like this or ever id about the pact.

Seems one article spread without persons verifying.
This article from monringstar indicates it's fake news.

Reports of the petrodollar system's demise are 'fake news' - here's why
Perhaps the closest thing to a petrodollar deal was a secret agreement between the U.S. and Saudi Arabia reached in late 1974, which promised military aid and equipment in exchange for the Kingdom investing billions of dollars of its oil-sales proceeds in U.S. Treasurys, Donovan said. The existence of this agreement wasn't revealed until 2016, when Bloomberg News filed a Freedom of Information Act request with the National Archives.
https://www.morningstar.com/news/market ... -heres-why

[Dizzy28]

BRICS Summit underway in Kazan, Russia.

India the real OG in this.
Their 155mm shells are in Ukrainian hands
They are the largest purchaser of under-priced Russian oil
They still buy 70% of arms from Russia while being a member of the Quad to counter Chinese influence
They are building a massive port in Iran while supplying Israel with Arms.

[VexXx Dogg]

BRICS Summit underway in Kazan, Russia.

India the real OG in this.
Their 155mm shells are in Ukrainian hands
They are the largest purchaser of under-priced Russian oil
They still buy 70% of arms from Russia while being a member of the Quad to counter Chinese influence
They are building a massive port in Iran while supplying Israel with Arms.

Aaah boy the new axis

[zoom rader]

BRICS Summit underway in Kazan, Russia.

India the real OG in this.
Their 155mm shells are in Ukrainian hands
They are the largest purchaser of under-priced Russian oil
They still buy 70% of arms from Russia while being a member of the Quad to counter Chinese influence
They are building a massive port in Iran while supplying Israel with Arms.

Zionists pretend to like Indians but they hate everything that is not white