Despite what you may have read here, BRICS was mostly created to blunt the influence of the IMF and World Bank. The complaint with the IMF it often requires western-style monetary and political reforms, and that nice Mr. Putin land Mr. Xi aren’t able to advance his interests like they’d like–like corruption and suppressing human rights–so the BRICS’ New Development Bank was created to play a similar role to the IMF but without the yoke of dollar-based oppression.
Only sticky wicket is that BRICS members couldn’t find enough of their own currencies to fund the bank, so they turned to Wall Street and made loans denominated in, wait for it, US dollars. That worked fine until Putin invaded Ukraine and US banks didn’t want to work with Putin anymore.
Now the NDB is in trouble, liquidity has dried up, they can’t find dollars to pay back their loans, new lending has almost ceased, and bond prices have cratered.
Turns out it is hard to de-dollarize if you continue using dollars.
Before Bretton Woods it was gold and silver that ruled which Bretton Woods acknowledged by making the US dollar convertible into gold.
As the US devalued the US dollar the Bretton Woods accords unravelled but not before the US managed to grow its economy to the point that it was unchallengeable.
It’s no wonder that the world fears the American Empire’s Power but there is little chance for the world if it does not get its economy or economies in working order.
The Captain
is happy to have, since 1985, most of his estate in US dollars, the world’s reserve currency. It’s as simple as that.