What is BRICS explained | How CHINA is using BRICS to kill US Dollar | Abhi and Niyu

Summary

The video discusses the potential for BRICS (Brazil, Russia, India, China, and South Africa) to challenge US dominance by creating a new currency, possibly backed by gold, to end dollar hegemony. It explores the economic and geopolitical implications of BRICS, the history and development of the Euro as a model, and the necessity for India and China to improve relations to make a common currency feasible. The video emphasizes the importance of cooperation among BRICS nations and invites viewers to engage with the channel for more insights on geopolitics and economics.

Takeaways

• 🌏 India and China are rivals, but BRICS may bring them together.
• 🌐 BRICS includes Brazil, Russia, India, China, and South Africa.
• 💰 BRICS is planning a new currency to challenge the US dollar.
• 🔍 BRICS was formed after the 2008 financial crisis.
• 👥 23 countries, including Saudi Arabia and Iran, have applied to join BRICS.
• 📈 BRICS countries account for 42% of the world's population and 17% of global trade.
• 🪙 The new BRICS currency might be backed by gold.
• 🇪🇺 The creation of the Euro took a long time, and BRICS might follow a similar process.
• 💡 BRICS' ultimate goal is to reduce Western dominance.
• 🤝 For BRICS' success, India and China need to improve their relations.

Q & A

What is BRICS?

BRICS is an organization that brings together the top non-Western countries, namely Brazil, Russia, India, China, and South Africa, to collaborate on economic and geopolitical matters.

What is the rumored plan of BRICS regarding currency?

There are rumors that BRICS wants to create a currency that could potentially end the dominance of the US dollar.

When did BRICS start and why?

BRICS started after the 2008 financial crisis when Brazil, Russia, China, and India's leaders met for the first time in Russia. South Africa joined the group in 2010.

What is the significance of BRICS in terms of global population and trade?

BRICS represents 42% of the world’s population and accounts for 17% of global trade. The group also covers one-fourth of the world’s land.

Why is the US dollar considered a weapon in global finance?

The US dollar is seen as a weapon because the US can impose sanctions, like those on Russia during the Ukraine war, which include removing countries from the SWIFT system and freezing reserves, thus controlling global financial transactions.

How is China preparing for potential sanctions similar to those imposed on Russia?

China has been increasing the use of its own currency, the yuan, in global trade and has been preparing to face potential sanctions by building up its gold reserves and seeking alternatives to the US dollar.

What historical example is used to explain the complexity of creating a new currency?

The creation of the Euro is used as an example, which took over a decade of preparation, including the establishment of the European Monetary System and the Maastricht Treaty.

Why is the friendship between India and China crucial for the success of a BRICS currency?

A common currency for BRICS is seen as impossible until India and China, the two biggest players, resolve their differences and cooperate both economically and politically.

What were the consequences of the clashes between India and China in the Galwan Valley in 2020?

The clashes resulted in the death of 20 Indian soldiers, worsened relations, led to increased military presence at the border, and caused India to ban Chinese apps and raid Chinese companies.

What are the three critical aspects required for a new currency to be successful according to the video?

The three critical aspects are expansion (more countries joining BRICS), acceptance (countries making collective decisions), and trust (linking the currency's value to gold).

What are the benefits of the Euro that the BRICS currency aims to replicate?

The Euro brought economic stability, facilitated easier trade within Europe, and created neutral institutions like the European Central Bank, which increased political stability.

What steps are necessary for BRICS to create its own currency?

BRICS needs to enhance cooperation among its member countries, ensure economic and political collaboration, and possibly follow a model similar to the Euro, taking into account geographical and ideological differences.