By Saeed Ullah Khan Wazir.
The Russo-Chinese joint venture of introducing Petro-gold instead of Petro-dollar has ushered in an era of multipolar order of economic configuration. Dollarization masquerading as reconstructing the post-WW 11 devastated Europe morphed into instrument of economic exploitation. The introduction of dollar as international trading currency led to the US’ centuries-old neo-imperialism of political and economic resources of developing and third world countries. In the wake of post-modern era, however, the Thucydides Trap when a rising power causes fear in an established power – is inevitable and justified.
The Chinese government’s announcement of replacing US Dollar with Chinese Yuan for Pak-China trade is clear indication of the US’ declining monetary hegemony and exploitation.
BRICS and AIIB are alternative to the Bretton Woods system of monetary management like IMF, WTO and ADB. The BRICS bloc consists of fastest growing economies. China’s BRICS-plus (Next 11) countries inclusion idea will further pave the way for regional economic integration and connectivity.
Russia, Iran, Syria and Venezuela appeared a pressure group on OPEC as they adopted their national currencies and gold in return for energy supply and trade. Interestingly China and India, the biggest energy exporters, pay in their own currencies.
In 2014, Putin personally sent the governor of the Russian Central Bank, Elvira Nabiullina to Beijing for the establishment of multilateral swaps. The Ruble-Yuan swap deal has transformed BRICS into an anti-dollar alliance. The BRICS Central Bank currency swaps will bypass dollar which will turn out to be defective replacement of the capitalist-dominated IMF.
This could be a watershed in structuring and expanding multilateral institutions from regionalism to globalism. The recent Trump’s withdrawal from the Paris Climate Change Agreement, the Trans-Pacific Partnership, and drastic cut of US$ 185 million to the UN fund will result in decline of its global leadership role. As nature abhors vacuum, so China and her allies will fill it.
Saeed Ullah Khan Wazir is a freelance writer,human rights activist, aspirant to CSS and having specialization in English Literature and Linguistics from NUML, Islamabad.