In this article we will know about When US dollar started, how US dollar became world currency, why US dollar is strong, will US dollar crash,
there are so many superpowers in the world, but why was the dollar made a global currency? What was the compulsion of other countries that the US dollar had to be made a global currency? No matter how big the superpower is, even if it is Russia, if the US imposes sanctions, then why does the economy of that country stand on the ground at night? And why is it only about US sanctions? The other countries like Nepal, Sri Lanka, South Africa, if the other countries impose sanctions, then why doesn't it matter? Why doesn't it make any difference? What is the real reason behind keeping the rest of the countries in check? And all these things I am explaining to you, the economics of the US dollar, which is going on in the whole world, without understanding it, it is very difficult to understand geopolitics.
But if you understand this thing once, then you will tell by looking at the trade of only two countries, that how are their relations. So in this, we will discuss everything in a very simple language. It was thousands of years ago and at that time there was no currency. At that time, people used to do barter system. Meaning, if someone has tomatoes, he needs rice. So, he took the rice by giving it to the person who has the rice. In the same way, people exchanged goods and services according to their needs at that time. So, what happens is that the way they were using the barter system, it was fine to trade in small amounts. But when you had to deal in large amounts, there was a problem.
These are tomatoes, rice, all these things. So, after some time, it used to get spoiled. So, people had a lot of difficulty in trading in large and long term. But after some time, people came up with a solution. They started to deal in such things that are not bad. Like valuable metals, gold, silver, copper. They started trading in this. So what happened after this is that you keep it safely and keep it for as long as you want, it won't be bad. So people kept it safely and according to their needs, they used to take it instead of what was needed. And what did Lydia do in this? made coins of gold and silver so that people can trade easily. After this step, gold, silver, and their coins started to move.
It was fine till now, but there were some problems in this too. Like when people used to travel on a long route and there was a lot of trade to do, then this gold and silver used to be very heavy. Managing them, keeping them safe from theft on the road, and transporting them properly used to be a problem. So along with time, people started to find solutions to this problem too. Suppose someone wants to go to Mumbai from Delhi with gold. So, people used to look for a trader in Delhi and tell him that they don't want to travel with so much gold. You keep our gold with you. When we reach Mumbai, your known traders in Mumbai He will give us the same amount of gold when we reach there.
And you can take whatever you want. In such a case, the businessman in Delhi used to give you a stamp and sign on a paper with gold. Then you used to take that paper to Mumbai. And after reaching Mumbai, you used to show the stamp and sign on the paper to the businessman in Mumbai and take the gold from there. The worry of gold and silver on the way used to end with this. You must have heard of the Havala work of today. And this sign and stamp paper used to be given in exchange for gold. In the future, this currency is made. This is what you see written on the note that I promise to give so much money to Dharak. This is it.
Now, you may have a question in this that if there is a note of 500 in today's date, then we cannot convert it to gold. We can buy it at any rate, but it is not convertible. So see, in the future, you will understand everything that why this happened. At that particular time, people were trading in this way. But the whole system was unorganized. One man was working on the other by trusting each other. So there were many loopholes in it. Gradually, attention was paid to organize it. And first of all, in the year 1154, there was a man in China, Wenyan Liang. He, along with the authority of China, implemented the whole system in an organized manner. What did he do? For the same work in China,
a bank. In China, people used to go to the bank, deposit their gold, and in return, they used to bring a banknote. So when this happened, the people who used to trade, their tension was gone. They didn't need to go around with gold anymore. They knew that they had a banknote. Whenever they wanted, they would go to the bank and take their gold. They just had to trade in banknotes. So look, at that time, this type of trade started. This is the note that was used at that time. Now after this, around the 13th century, Marco Polo from Europe to China and they were impressed by the whole system of currency. They came back to Europe and implemented the paper system in Europe as well.
People started trading in paper currency in Europe as well. Slowly, paper currency was used in other places as well. People were trading in paper currency by putting their gold and silver in the bank and being tension free. In Europe, they named their currency as pound sterling. In this, everything was pre-defined that if there is one sterling, how much gold will you get in return. Like if I talk about that time, I was getting around 7.3 grams of gold in one sterling. Meaning that if you have 150 pounds of sterling in your pocket, then you are roaming around in your pocket with more than 1 kg of gold. That is also tension-free. This is the entire year-wise chart that in which year the sterling gave how much gold and silver.
So in the same way, the other countries also kept their system in their country. Countries were not trading with each other. This was introduced internationally as well. When one country was trading with another, paper currency was also used. Countries started trading with their own currency. For example, China used to give its yuan to Europe. They used to give their own pound sterling and order goods from China. And there was no tension in any country because they used to trade in paper currency. In the end, they used to get gold in return. And this whole system of trade became so easy that the trade of the whole world increased rapidly. So basically, all the national and international trade was happening in gold. But a piece of paper was reflecting it, which was called currency.
But any country could print as much currency as it had gold. which is called the gold standard. It means that if you want to buy more things in your country, you should have a currency. And you can print the currency as much as you have gold. So the country that has more gold has more resources. If you reverse this, the country that produces more goods and resources will have more currency, which means that the country will have more gold. In the beginning of the 19th century, the UK was producing the most resources and was sending different things to the world. It had more currency, meaning more gold was accumulated. The gold mines in the UK had increased a lot and the UK's currency, sterling, had become larger than that of other countries.
And the pound sterling had become the most popular in the whole world. People started trading in it the most. At that time, 60% of the world's trade was in pound sterling. And some countries started keeping the pound sterling instead of keeping the gold. Because it was easier to keep the paper currency compared to gold. And after that, the year starts in 1913. This was the time when all the currencies started changing and the US dollar started appearing in the picture. at this particular time, the start of the First World War. This was the time when the situation in the UK was very bad. Due to the war and arms, a debt of £7.8 billion comes to the UK. And this was not a small amount.
According to that time, it was a very big amount which was their entire GDP. 25% of it was loaned to them. The gold reserves were completely gone. And where the rest of the countries were supplying the resources to the rest of the world, it started going the other way. They had to import it from the countries. In the first world war, the US was neutral in the beginning. It was quiet. The countries that were fighting were being sold by making weapons. It was increasing its gold reserves. And even later, when the US entered this war, it made a lot of money by giving weapons, food grains, etc. This made the US very profitable. In this war, the US was making money, but at that time, the US was not that far ahead.
Because the US didn't have a central bank etc. The trade that the US used to do had a lot of restrictions. But in this war, it filled its gold reserves and built central banks in its country. It brought several types of federal reserve acts. And it established itself in the world economy. But this was just the beginning. The coming time was better for the US. If we talk about today's date, the US is not the biggest exporter. In fact, the US has a lot of services from India. outsource, especially in the tech sector. This is the reason why you must have noticed that demand for skilled technical professionals in India is increasing. And you can also make your career in this growing field.
After this, the second world war starts and in this war, and sells more weapons. And because of this, most of the gold in the world was gathered near the US. Look at this graph of that time. 70% of the gold in the world had come to the US. 22,000 tons of gold was with the US. And the reason for all this was that at this particular time, the US exported the most. It got a lot of opportunities to export. The US took full advantage of it. And pound sterling, which was ruling the world, now the US dollar came and sat in its place.
And when all these things were happening, Germany gave the pound sterling another shock. What did Germany do? The UK's sterling, which was very popular all over the world, Germany made fake sterling pound notes and started putting them in the market to get rid of the trust of the countries and people with this currency and also get rid of the sterling pound reserves. At that time, Germany was producing 5 lakh fake notes in a month and putting them in the market. This caused a huge loss to the UK and there was no solution. And the whole situation that was going on, The benefit of this was given to the US dollar. And from here, the US economy starts. The Second World War ends. All the countries, Britain, Germany, Soviet Union, France, were completely destroyed.
There was only one US that was in good condition. The rest was in bad condition. The gold of the whole world had come to the US. The financial system of the whole world had collapsed completely. Now, the US had more money and more gold. But after the Second World War, the European countries and Japan They needed more food, grains, and fuel. They were trying to import from other countries. They didn't have any currency or gold. The US was afraid that the barter system would start again. The whole world's financial system would be ruined. The US dollar's advantage, which is leading, To deal with all these issues, in 1944, in the Mount Washington Hotel of Bretton Woods, New Hampshire, 44 representatives from 700 countries gathered to find a solution to this problem.
The purpose of this meeting was to create a new financial system to improve the situation. In this meeting, the US says that the financial problem in the world is neither trading nor the collapse of the economy. other countries have a shortage of gold. So, there is only one solution to this. You all do one thing. You do all your deals in US dollars instead of your own currency. And we pledge and guarantee that we will give $35 instead of 1 oz gold, i.e. 28.3 gm gold. It means that anyone from the whole world can take 1 oz gold by giving $35. We have enough gold. It means that the first countries used to back their currency with gold, now they will back it with US dollars.
And the US dollar will be backed with gold. And secondly, in this meeting, the US and the rest of the countries did this, World Bank and IMF, International Monetary Fund, made this and said that the countries that have been destroyed in the war, they will rebuild themselves. For that, IMF and World Bank will give loans. But in this also, they said that the loan will be given in dollars, and when it has to be returned, it will also have to be returned in dollars. And not only this, the US made a plan, which was called the Marshall Plan. What did the US do in this? To reconstruct the countries of Europe, the US gave $13.3 billion in the US dollar. If you compare it today, it was about $173 billion loan.
And after giving this loan, the US said that you have dollars, money, buy this dollar from us and reconstruct your country, rebuild it. This is how much loan was given in dollars. Even today, you must be reading in the news country issue bonds denominated in US dollar to be repaid in 10 years. Meaning, if you have taken a loan in dollar, then you will have to pay it in dollar. And you will have to pay it in this much time. US did not think in short term, US thought in long term. They knew that all countries need a loan, they will take a loan. And US was very desperate to take advantage of this opportunity. In the whole world, US wanted to run US dollar.
In the whole financial system of the world, US dollar, apart from that, no other currency, but only US dollar wanted to circulate. Because it had a lot of benefits and you will get to know the benefits later. Now you can say one thing here that all the countries except the US were so foolish or so easily acceptable. It was also possible that they would slowly rebuild themselves and the gold is also produced. So why didn't they collect it and slowly increase their country? Why didn't they listen to the US? So see, gold was produced in two major places in the world. South Africa and the Soviet Union. The two countries that produced gold had bad relations with the rest of the European countries.
The European countries didn't want them to produce gold, buy it from them and benefit from it. That's why they accepted the U.S. loan. It's true that the U.S. helped a lot in rebuilding Europe. You can see that to this day, their relations have been very good. If the other countries didn't want the U.S. to listen to them, they didn't have a special option. Let me give you an example. For example, Japan needs a lot of grain. They talked to Sri Lanka and asked them to give them grain. After taking the grain from Sri Lanka, Japan gives them money in its own currency, Yen. So what will Sri Lanka do with the money that Japan is giving in its own currency? Because the rest of the countries will not take the currency of Japan.
But yes, in this very deal, Shillonga got to know that Japan will give US currency instead of its own currency. So he will happily take it because he knows that if I take this US dollar and give it to the US, then I will get gold in return. So this was the reason that US dollar was going on in the whole world in an unsaid communication without even wanting it. And at that time, the other countries did not believe in each other's currency except US dollar. That was just one reason that they knew that US dollar will get gold in return. Using US dollar was a compulsion of other countries. Just like today's date is forced, it was also made at that time.
And this was the reason that the US was saying that the rest of the countries started using everything from loans to trade in the dollar. Now the US does not stop here either. The US knew that the importance of the US dollar, if it goes in this way, it will not work for a long time. It had also seen the condition of the UK's pound sterling. So the US did not want the US dollar its condition was like a pound sterling. After this, the US played another master stock. Actually, when all these things were going on, at the same time, the US and Europe, their companies, were extracting oil all over the world and were trading it. So, from finding oil to extracting it, all the technology was with the companies of Europe and the US.
The Arab countries had oil, but finding it, then taking out the technology, selling it in the open market, making profit, They had no idea about this. So from here, America takes its next move. So American companies reach Saudi Arabia and help them in extracting oil. From this step of America, Saudi Arabia takes a huge jackpot. A huge oil field emerges in Saudi Arabia. And this oil field, in this entire process of extracting it, what do US companies do? They make a base in Saudi Arabia. And extracting oil, using technology to send it to the market, this entire process takes place. Now, from here, two things were in front of Saudi Arabia. First of all, he needed the help of the US to extract oil and its technology.
Secondly, he also needed the US security. Actually, when the World War was going on, the companies of the US in Saudi Arabia had built their base and were extracting oil. At that time, Italy dropped bombs on the US facilities in Saudi Arabia. So, Saudi Arabia was also very concerned about the security. Saudi Arabia wanted the US to give them security. Because the US was a superpower and Saudi Arabia wanted to do the business of oil by risking its country. So, this is its background story. So, what happens? When the Bretton Woods Agreement was signed in 1944, a year after that, in 1945, the king of Saudi Arabia convinced the US that he will help them in oil extraction and security. The only thing you have to do in return is that you have to take all the payments in US dollars and any currency.
Saudi agreed to this easily because they didn't have any alternative. They didn't have much trust in any other currency. The US dollar can convert into gold anytime. So Saudi agreed to this easily. Another thing came in front of the other countries that if you want oil for your country, you won't get it in any other currency. it is compulsory to have US dollars. That's why you have to keep US dollars in your reserves if you want oil. And the oil of the modern economy It was the most powerful product. After this deal with Saudi Arabia, the other oil countries also started accepting oil in dollars. Because they also faced the same challenges. And if Saudi Arabia gives this option of dollars, then it will have an advantage.
So the other Arab oil countries also started selling oil in dollars. After this, the US pushes itself a little more. The US thought that its dollars, which are spread all over the world, all the countries will not be able to convert gold at once. So what did the US do? The amount of gold it had, started printing more currency than that. And in the international market, the more gold the US had, the more US dollars started to float. Now, what the US did was that there was really very little possibility that all the countries, all the people should come together and convert US dollars to gold. But there was one situation when it was possible that everyone would demand to buy gold by giving US dollars together.
And that situation was that if the price of gold increased in the foreign gold market, For example, if you have $1, the U.S. will give you 28 grams of gold instead of $1. If you get more than 40 grams of gold in exchange for $1, what will you do? You will buy it cheaper than the U.S. and sell it at an expensive price in the gold market. This will benefit everyone. So the U.S. had to keep in mind that the gold market outside its rate should be close to the US dollar. Otherwise, it will get into a lot of trouble. And this was the reason why the US was forced to keep the prices of the gold market stable. Keep it close to the US dollar as much as it offers.
Because the price of gold in the gold market is above and below the demand and supply. If there is more gold in the market, if the demand is less, then the gold will become cheaper. And if there is less gold left and the demand is more, then the gold will become expensive. And this fear was very big for the US. So the US had made a plan for it. It had eight countries. who had taken a lot of debt from the USA, made a pool of gold. All these 8 countries make a pool of gold and keep it in one place. After that, they manipulate the demand and supply of the world's largest gold market. It means that if the demand for gold increases, then they start selling gold in the market.
And if the demand decreases, then they start buying gold in the market. They used to buy and sell, but their main goal was to keep the dollar rate close to it and maintain the demand and supply. But by the year 1967, the country in which the US had made the gold pool, they suffered a little loss. So, this country got frustrated and left this pool. So, this plan of the US also stops working in a way that the US gets stuck in a difficulty. After this incident, the US got so angry that the US turned the phone inside the UK and convinced the Queen of London. And by taking a proclamation from the Queen, the whole market of the London gold exchange was closed.
It means that the whole issue of demand and supply was over. Now, no one can buy gold there and no one can sell it. And at the same time, the gold reserve of the US was also decreasing. See, the gold reserve of the US By the time of 1960, it had come down this much. Along with this, the president of the US, Richard Nixon, started to bully the rest of the countries a little, that don't convert the dollar into gold. So all these incidents that were happening, like the London market was closed, after that, Nixon was pressurizing them a little not to convert. So this thing backfired on them and the rest of the countries became insecure. And what did they start doing?
They started taking gold instead of dollars. So all these things came out like a disaster for the US. And when all these things don't work out, On August 15, 1971, President Nixon releases Executive Order No. 11615 and blames international speculation. He says that the US dollar's convertibility means that from today's date, the dollar will not get gold in return. I have directed Secretary Connolly to suspend temporarily the convertibility of the dollar into gold or other reserve assets The whole world was shocked. All the trade was happening in dollars. The debt that was taken was to be returned in dollars. The oil was coming in dollars. Everyone's reserves were in dollars. And saying this was a shock to the world. That's why this incident is called the Nixon Shock.
After this incident, the country did not know what to do. Think of it as if someone has signed a cheque and distributed it to the whole world. Some have 10 lakhs, some have 5 lakhs. By writing like this, They have signed a cheque and distributed it. And later it turns out that there is a cheque, but they can't encash it. So what are people doing now? They are giving the same cheque to each other and taking the stuff and giving it. And the biggest problem in front of all the countries was that even if they get angry and say that we will not use the dollar, then what is the alternative to using the dollar? They didn't have a solution for that. Now Saudi Arabia also comes to the US that we are selling oil here and collecting dollars and now you have done such a thing that we can't even convert it into gold.
What is the value of the dollar? So the US told Saudi that there is no need to worry. You are selling the oil, keep selling it in dollars as it is. And the dollar that you are getting from selling oil, invest that dollar in the US. Buy our resources from the same dollar and order it in your country. Invest in our bonds, in our companies. We will help you in every way. The US dollar that you are getting from selling oil, it will not be bad for you. You don't have to worry. keep doing this and take the oil in the US dollar. Now Saudi was also helpless, he did not have any other solution to this. So he agrees. So the dollar that comes from selling oil and by taking out all the expenses, the remaining dollar that these countries invest in the US is called petrodollar.
You must have heard this word in the news. So this was a big win for the US because if other countries want oil, then the US dollar will have to be maintained and the US dollar will remain relevant in the market. There was no other alternative. Now this decision was taken that oil will be sold in US dollars only. Some Arab leaders openly opposed that we will not accept the sale of oil in dollars only. And whenever such cases came, the US took advantage of its military superpower and calmed down those voices in different ways. For example, in the year 2000, the president of Iraq, Saddam Hussein, refused to use dollars. Instead, he started selling oil in euros. Saddam Hussein said that United Nation Oil,
All the transactions for the food program were taken in euros. In return for the 3.3 billion barrels of oil, they collected up to 26 billion euros. But because of this, Saddam Hussein was overthrown and hanged. After this, Gaddafi of Libya left the dollar and proposed the idea of making a unified African currency. Libya plays a very important role in the global oil market. This thing was considered a very big challenge for the US dollar, according to the experts. But a civil war was started in their country and Gaddafi was overthrown. If you remember, in December 2015, one of Hillary Clinton's private email server emails got leaked. One of the emails was related to this. Which was sent by her very close attorney, Sidney.
In it, everything was written about how Gaddafi is using the euro, leaving the US dollar. Iran, which had 126 billion barrels of oil reserves, the world's 10% oil reserve and the second largest natural reserve. Iran set up its third development plan in 2005, IOB, which means Iranian oil board. It was said to use the euro in it. Because their 45% trade was happening from European countries. So Iran said that we will accept it in Euro, it will benefit us. But what happened to Iran in the future and what is the situation now, you know. The US has imposed so many sanctions on Iran, this plan also stopped at the same time. You saw what happened to crypto in the future. So what I mean to say is that in an uncertain communication, everyone knew that standing against the dollar means standing against the US directly.
To stand against a super power and a nuclear power. And the US had set all these examples and this is the reason why anyone thinks 10 times to mess with the US. Along with this, there was one more thing, the swift network, which gave the dollar more advantage. Now, what is this swift network? So see, as you transfer money from one bank account to another bank account, so it is not that a person goes to the other branch in a car to give money. Simply, digits are from here to there. which we call money transfer. And for its settlement, we need a unique code like IFSC code and other details. Similarly, when someone wants to make an international transaction, then a secure communication channel is required for that as well, so that international banks can know which bank to reflect money from which bank.
Earlier, TELEX was used. It was an analog system. It was used. The details of the bank were sent manually that money has to be transferred from this account to this account. But after this comes the swift network. It is simply a secured and automated messaging system that tells the international banks which country and which branch of the bank wants to transfer money to. And when the message is delivered in a secure manner, the money is transferred. Let me explain with an example what I want to say. Suppose, while sitting in India, I want to send money to my friend Vikas who is in Singapore. So, first I will go to the local bank SBI, give them the swift code and other details, So that the SBI will know that a man named Vikas in Singapore has to transfer money to this account.
Now, if the SBI has direct bank of Singapore integration, then money will be transferred immediately and Vikas will get it. But if not, which does not happen in most of the cases, then such a case is required of Correspondent Bank, which is in the US. They take swift code and details and convert it into US dollar and complete that entire transaction. Even if it is not understood, it is not a problem. If any country gets out of this network, then it will not be able to make any international transactions. Its foreign funding will be stopped. Import and export will be affected. Even the people who make money from YouTube, will not be able to reach them. Removing a country from Swift Bank is like dropping a kind of financial nuclear bomb.
The entire control of the Swift network system is indirectly of the US. There are about 2400 shareholders in it. And these 2400 shareholders make up 25 board of directors. In which these countries have their members. Belgium, Canada, France, Germany, all these members. But all the control is done by the US in an unsaid communication. So if the US wants, it can remove any country from this system whenever it wants. For example, they removed Russia. Before this, they removed Iran. Because of this, there was a huge loss of these two countries. It is such a big thing that if this is applied to any country overnight, then overnight its economy comes to the ground. This is the reason why the US has weaponized the dollar in a way.
The US gets a huge geopolitical advantage because of the dollar, which does more harm than its military power. The countries that don't work according to the US, the US can bring the economy to the ground overnight with the help of the dollar. Actually, the US imposes sanctions. You must have heard in the news many times that the US has imposed sanctions on this country or on this particular thing. The US imposes two types of sanctions. One is the primary sanction and the other is the secondary sanction. What does the US do in the primary sanction? It clearly forbids its companies, institutes, and citizens from doing business with that particular country. So the companies of the US fall behind the countries. And when the companies of the US do this, the companies of Europe also fall behind.
And this causes the share market of that particular country to fall and the investment stops. Because of the loss, no one invests in the sanctioned countries. The companies of the US and Europe, they have a huge influence in the whole world. When they step back from a country, then looking at them, the companies of other countries also run away from investing. Because when the US imposes sanctions, I don't know where it will stop. It's not a big deal that a swift ban will be imposed in the future. Like they did in the case of Russia. Russia was made out of the swift network during the Ukraine war. And in such cases, the biggest country and its companies fall to the ground. Because it is a country and its companies are unable to sell goods.
And even if they sell goods, then money cannot be transferred. The other thing that the US does is to impose secondary sanctions. The country on which the sanctions are imposed, the country on which it will trade, is also sanctioned. This is called a secondary sanction. So what happens is that the country on which the secondary sanction is imposed, is isolated from the entire international trade. Its funding stops. Like what happened to Iran. They imposed a secondary sanction on Iran. India had the advantage of taking oil from Iran. But even after the advantage, India could not buy oil from Iran. Whereas Iran made it cheaper. The prices of oil in the market, He was giving it at a low price, but even after that, India could not take it.
So basically, if you look at it, the fight was between the US and Iran. The sanctions were imposed on Iran. But those countries also have to bear the loss of it, which has no meaning in this whole conflict. And without doing anything wrong, inflation in those countries also increases, oil prices also increase. And this advantage is only available to the US. If India wants, then India can also impose sanctions. Announce that we have imposed sanctions on Pakistan. But there is no dependency of rupees in the global market. Neither India has a system like Swift Network. Now the UPI is slowly increasing, but there is still time. That is why the impact is the most of the US sanctions. In the whole world, the costing of US sanctions is very heavy on people.
When the US imposed sanctions on Russia, all the countries backed off. But India still bought oil from Russia. Actually, the US and India have to bear a little because of China. This is because the US sees India as a counter to China. That's why not much has happened with India. But if any other country had done this, it would have been in trouble. So what I mean to say is that the US's military power is more than its economic power. And if someone tries to weaken this economic power, then their military power comes out. And for now, no one has a solution to this. But Biden has put this suit ban on Russia in the Ukraine war. This is a kind of expert's belief that it is like kicking his own foot.
Because not only Russia will be sanctioned, the rest will also suffer a lot. And this is the reason why the rest of the countries are also looking for alternatives to this particular thing. For the past few months, the rest of the countries have also been troubled by this sanction, such as China, Russia, Argentina, from Brazil to South Africa, they are all trying to reduce their dependency on the dollar. It is not possible to leave it completely, but they are trying to reduce it. And it has been named in the news as de-dollarization. China has declared its US bond Iraq said that it will sell oil in yuan. Shanghai said that it will trade in local currency. Saudi and China made their first transaction in yuan.
Russia has also announced that it will keep the money from oil in yuan currency. They have also agreed that we will trade in our currency. But experts believe that it is not possible to get the US out of this way. Every 10-15 years, when all the countries get excited, they do it, but nothing happens. Practically, if you look at it, one is Yuan and the other is BRICS, Shared Currency. These two are the ones that can come out as an alternative to the dollar and can give it competition. See, Brazil, Russia, India, China and South Africa, they have made BRICS together. In the next year, more countries will join. So, they have said that the countries of BRICS, They will combine their currencies and make an alternative of one dollar.
Like what happens now, there is an SDR in IMF. In which it happens that the currencies have a weightage, there are points. Like the US dollar's weightage is 43. Import, export, trade power and many other things give points. Such BRICS countries are saying that by combining the currencies of all countries, like this weightage system, We will make a currency whose name will be Bricks Currency and its symbol will be Beta. Now whether this will happen or not, time will tell. But for now, our dependency is on the US dollar.
