Till debt do us part – Asia Times

For the last 500 years, a new dominant currency – or reserve currency – has emerged in Europe roughly every hundred years. During the colonial era, Portugal, Holland, France and England all had their turn. The change from one dominant currency to the next was typically accompanied by wars and social upheaval.

For much of the 20th century, the US dollar was the world’s dominant currency. History suggests that the dollar is approaching the end of its natural cycle. This time the challenge comes from Asia. China is leading an effort to develop a parallel monetary system that will split the global financial system.

China has powerful allies. The BRICS countries, Brazil, Russia, India, China and South Africa, represent 41% of the global population. The so-called “de-dollarization coalition” has started using currency swaps to bypass the dollar system. The next step could be a BRICS settlement currency based on a basket of the currencies of participating countries.

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