Brazil,Russia,India,China move Off Dollar Credit

By stephinrazin,  Newser User

Posted Apr 18, 2011 10:43 AM CDT

(User Submitted) – The BRICS nations, Brazil, Russia, India, China, and South Africa announced they use their own currencies instead of the predominant US dollar in issuing credit or grants to each other.

This agreement does not include actual trade, but is limited to credit. It does show a willingness for these nations to move away from the dollar in the future.

At a news conference with other BRICS leaders Manmohan Singh told reporters "Our designated banks have signed a framework agreement on financial cooperation which envisages grant of credit in local currencies and cooperation in capital markets and other financial services,"

This announcement alone would be of limited importance. Unfortunately, there have been multiple warning signs of major developing nations moving away from the dollar. This could have huge consequences for the US ability to spend on credit. It points to the day when the world will no longer recognize the dollar as a reputable reserve currency. Read the full article.

Story not vetted by Newser.
  (AP)
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