An interesting essays of Prof. Michael Chossudovsky published on Global Research dismantles the position of “the financial media as well as (of) segments of the alternative media (that) are pointing to a possible weakening of the US dollar as a global trading currency resulting from the BRICS (Brazil, Russia, India, China, South Africa) initiative” to create a development bank -the BRICS New Development Bank (NDB).
How Prof. Chossudovsky correctly observes, while the creation of BRICS has significant geopolitical implications, “both the AIIB (the China’s new Asia Infrastructure Investment Bank, which, according to media reports, threatens to “transfer global financial control from Wall Street and City of London to the new development banks and funds of Beijing and Shanghai”) as well as the proposed NDB and its Contingency Reserve Arrangement (CRA) are dollar denominated entities. Unless they are coupled with a multi-currency system of trade and credit, they do not threaten dollar hegemony. Quite the opposite, they tend to sustain and extend dollar denominated lending. Moreover, they replicate several features of the Bretton Woods framework”.
Continue reading the article here.