2024

when

<p><strong>Former Zimbabwean Finance Minister Tendai Biti is skeptical about BRICS’ promises of financial autonomy through their planned move away from the dollar. He believes that nothing positive will come from the initiative actively pursued by the alliance of countries. Even less so for his country that is considering joining the BRICS, which is quite understandable.</strong></p>
<h2 id="h-de-dollarization-a-risky-path-for-the-brics">De-dollarization, A Risky Path for the BRICS</h2>
<p>The BRICS are determinedly working to end the dominance of the U.S. dollar in international transactions. They have recently launched <a href="https://www.cointribune.com/en/the-brics-launch-an-innovative-payment-system-based-on-blockchain-and-cryptocurrencies/" target="_blank" rel="noopener noreferrer nofollow">a blockchain and crypto-based payment system.</a></p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>While the project has numerous supporters among states, <a href="https://watcher.guru/news/de-dollarization-poses-disaster-for-brics-warns-finance-minister" target="_blank" rel="noopener noreferrer nofollow">some voices are sounding the alarm</a> about the potential catastrophic consequences for the block. Tendai Biti, former Zimbabwe Finance Minister, is among them.</p>
<p>Speaking on the issue, as Zimbabwe wants to join the BRICS, the former treasurer warned the state against blindly following the bloc’s trajectory. Especially with regards to the BRICS’ plan to move away from the dollar.</p>
<p>Tendai Biti warns of an imminent financial abyss for Zimbabwe, predicting disastrous consequences for the constituent countries of the BRICS if they were to embark on what he calls a “perilous” path.</p>
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <div class="entry-content-asset">
   <div class="social-embed-container">
    <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
     <p lang="en" dir="ltr">De-Dollarization Poses Disaster For BRICS, Warns Finance Minister<a href="https://t.co/w13zEwWVN4" rel="noopener noreferrer nofollow">https://t.co/w13zEwWVN4</a></p>— John Morgan (@johnmorganFL) <a href="https://twitter.com/johnmorganFL/status/1765846102832558277?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">March 7, 2024</a>
    </blockquote>
    <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
   </div>
  </div>
 </div>
 <figcaption class="wp-element-caption"><em>Tendai Biti expresses his concerns about the BRICS de-dollarization project</em>
 </figcaption>
</figure>
<h2 id="h-the-peril-to-be-feared">The “Peril” to Be Feared</h2>
<p>According to the former Zimbabwean Finance Minister, the dollar exit so desired by the BRICS is nothing more than a fantasy. This is especially true as the conditions for its realization are far from being met.</p>
<p><em>“The conditions for de-dollarization do not exist,”</em> he stated. Furthermore, he dismisses the notion that local currencies could magically usurp the dominance of the U.S. dollar.</p>
<p>For him, moving away from the dollar would be <em>“an absolute disaster that will cost workers and retirees dearly.”</em> A movement whose implications extend beyond the BRICS to affect developing countries where dependence on the dollar is often a lifeline.</p>
<p>Tendai Biti’s view comes at a time when Zimbabwe is grappling with profound financial problems exacerbated by the woes of its local currency. Indeed, he believes that the promises of the new BRICS development bank offer a glimmer of hope. However, he feels that the risks associated with abandoning the U.S. dollar are so significant that careful deliberation is warranted.</p>

De-dollarization: A great danger is looming over the BRICS!

Table of Contents

Cointribune EN

Other articles published on Mar 8, 2024

How the music industry is battling AI deepfakes one state at a time with the ELVIS Act

Binance Labs Winners Showcase Web3’s Expanding Horizons

Crypto Currencies: Latest Developments and Market Trends

Ethena’s USD yield surpasses 67% APY, becomes top-earning DApp

Bitcoin Bulls On Alert: Top Analyst Anticipates A Big Spike In The Cards

The Seoul AI Innovation Tour 2024 comes to an end, sharing insights on digital finance

Join our free newsletter for daily crypto updates!