Pretty scary if you are looking from the West and I would paint the rest of Africa in at least orange if not red. The BRICS movement is definitely gathering momentum as the world is seeking a change from relying on the US dollar. Will they regret this long term as having China and the Russians as your allies is not that comforting as China has been targeting this for years especially in Africa and South America.
This Reserve dollar figure is down from 70% 20 years ago dropping to 60% currently and is slowly shrinking. The US can print money as they please only because of their status of having the reserve currency. If that does disappear which is highly likely then there is huge problems financially ahead for the States.
BRICS has an alternative to the IMF and World Bank with their New Development Bank which has to be good news as countries have had enough of the world order and being dictated to. I do think the current order has overstepped and now they are paying the price. There is a hatred for the States and the West along with total distrust. Countries have been dictated to for so long and they are just fed up of taking orders.
We know why Gadhafi was killed as he was setting up the African Union which would mean they have their own currency similar to the Euro. For America this was seen as too dangerous and could never be allowed to happen. If we are honest the US lost Africa years ago and sadly Africa is very much Chinese controlled today.
How much will the expansion of BRICS affect the Dollar is on everyone's thoughts as we have not known anything else in our lifetime. This is definitely the changing of the guard when it comes to a super power and in many ways is self inflicted along with seriously weak leadership.
The Russian Sanctions imposed by the West were not affective like they should have been due to Germany still sourcing 55% of their energy sources for nearly an entire year from Russia. How can you take sanctions seriously by telling other countries to cut ties yet you are still trading as that is just hypocritical.
Russia has turned to 'friendlier' customers like India whose Russian oil and gas imports rose by 22 x last year. The G7 voted a $60 barrel cap on Russian oil and Japan still imports even though it is a small amount. So far this year they have only purchased $52 million worth which is mainly to keep channels open with their negotiations trying to claim back the northern islands they lost due to the Russians claiming them in WW2.
Whatever happens over the next 24 months there is big changes coming and for the US the outlook is not good for the Dollar. As a reserve world currency some other currency will be replacing it and most likely be the Yuan or the new BRICS currency.
As you can see this is normal progression as world reserve currencies do have a time line before they are replaced. The US Dollar would be on par timewise with many other previous currencies being 100-110 years. I just don't see years of build up however unless you are talking abut the US foreign policy being the factor.
