It’s not a general currency, but rather one meant specifically as a clearing system for settling transactions in international trade. The main problem it solves is convertibility. Using a common currency allows selling goods to one nation, and then using the funds to pay another nation for goods you might want to purchase from them seamlessly.
India has been buying oil from Russia using Yuan, after Russia rfused to accept any more Rupee payments.
Yes it’s all getting interesting. We can see why a standard currency could be useful to BRICS. (Which UAE just joined).
‘May you live in interesting times’ is an old Chinese curse.
I think this was actually made up by Westerners and attributed to the Chinese, but it seems very true.
It’s worth noting that the BRICS currency basically sounds like the Bancor idea that Keynes proposed https://en.wikipedia.org/wiki/Bancor
It’s not a general currency, but rather one meant specifically as a clearing system for settling transactions in international trade. The main problem it solves is convertibility. Using a common currency allows selling goods to one nation, and then using the funds to pay another nation for goods you might want to purchase from them seamlessly.
Thanks, that’s really fascinating. I didn’t really know about Bancor.