Summary of "BRICS Launches New Payment System in 185 Countries...Watch Out Dollar!"
BRICS New Payment System & Global Financial Strategy
BRICS has launched a new payment system connecting 185 countries, enabling trade in Chinese renminbi (RMB) and bypassing the US dollar. This marks a significant shift in global finance and trade settlement.
Countries across Africa, Latin America, the Middle East, and Southeast Asia are increasingly adopting RMB for loans, bonds, and trade. This trend is motivated by a desire to avoid dependency on the US dollar and to circumvent sanctions.
Market Forecasts
- By 2050, BRICS+ is projected to control nearly 50% of global GDP, while G7 countries will control only 18%.
- Bloomberg and other Western sources acknowledge the growing influence of BRICS and RMB in global finance.
Key Metrics & Growth Indicators
RMB Global Usage
- RMB loans, deposits, and bonds overseas have quadrupled over the past 5 years, exceeding RMB 3.4 trillion (~$480 billion).
- Overseas RMB bank lending to developing countries increased by $373 billion in the last 4 years.
- RMB’s share of global trade finance quadrupled in 3 years to 7.6%, making it the second most used currency after the US dollar.
- China’s KIPS (Cross-Border Interbank Payment System) processes nearly RMB 13 trillion quarterly, connecting 4,800 banks in 185 countries.
Notable Deals
- Kazakhstan issued a $2 billion RMB offshore bond at a 3.3% yield.
- Indonesia issued RMB-denominated dim sum bonds, with $18 billion in investor orders against $6 billion offered.
- South Korea and China signed a 5-year currency swap worth RMB 400 billion (~$49 billion).
- The first-ever BRICS loan in RMB was launched by China and South Africa for African infrastructure and development projects.
Business & Organizational Tactics
- BRICS Payment System: Serves as a framework to reduce US dollar dominance, facilitating RMB use in international trade and finance.
- Currency Swap Agreements: Used to facilitate bilateral trade and reduce currency risk.
- Trade Agreements: A zero-tariff trade deal between China and 53 African nations exemplifies strategic regional partnership building.
- Investor Behavior: Strong global investor demand for RMB bonds indicates rising confidence in RMB as a global investment currency.
Case Studies & Examples
- Indonesia’s Dim Sum Bond Sale: Demonstrated oversubscription with three times the demand, highlighting strong investor confidence.
- Kazakhstan’s Offshore Bond: Low yield (3.3%) indicates favorable borrowing conditions in RMB.
- Southeast Asia Trade: ASEAN countries upgraded trade agreements with China, reflecting shifting regional trade alliances.
- South Korea-China Currency Swap: Illustrates growing RMB acceptance in developed Asian economies.
- BRICS Loan for African Development: Focuses on infrastructure, energy, manufacturing, water, and education projects, showing practical application of RMB financing.
Vizla Copper: Mining Sector Case Study Linked to Geopolitics
Company Overview
Vizla Copper (TSX: VCU, US: VCUFF) targets critical minerals essential for energy security and supply chain independence, focusing on copper, zinc, silver, and gold.
Strategic Asset
- Acquired the Palmer Project in Southeast Alaska, an advanced-stage mine with:
- Approximately 17 million tons of indicated and inferred resources.
- High-grade copper equivalent (3%).
- $116 million invested, existing infrastructure, permits, and access roads.
Financing & Growth Plans
- Non-brokered financing of up to CAD 25 million to fund exploration, resource expansion, drilling in Alaska and British Columbia, and working capital.
Leadership
CEO Craig Perry brings over 25 years of mining industry experience and a strong track record.
Market Context
Copper’s critical role in electric vehicles (EVs), power grids, and data centers aligns Vizla Copper with global energy security and supply chain resilience trends.
Actionable Recommendations & Frameworks
For Businesses & Investors
- Monitor geopolitical shifts influencing currency usage and trade partnerships, especially BRICS and RMB adoption.
- Consider currency swap agreements and alternative financing mechanisms to reduce currency risk.
- Evaluate infrastructure and resource projects aligned with critical minerals demand driven by energy transition and supply chain security.
For Governments & Organizations
- Leverage RMB-denominated financing to diversify funding sources and reduce reliance on the US dollar.
- Foster regional trade agreements to strengthen economic ties and supply chain resilience.
Investment Strategy
- Understand the geopolitical context behind commodity and currency markets.
- Research companies like Vizla Copper that align with strategic minerals demand and have advanced-stage projects with strong leadership.
Presenters / Sources
- Unnamed YouTube presenter (primary narrator and analyst)
- Craig Perry, Chairman and CEO of Vizla Copper (quoted and interviewed)
- References to Bloomberg, Bank for International Settlements, Swift, ASEAN, and official statements from Singapore’s Prime Minister Lawrence Wong
This summary highlights the strategic and operational implications of BRICS’ new payment system, the growing global role of RMB, and the business case of Vizla Copper within the geopolitical and market context.
Category
Business
