https://www.gatestoneinstitute.org/18787/china-russia-attack-dollar
Russia and China have launched another attempt to develop a “new global reserve currency.” In other words, they are again attacking the dollar.
There is only one country that can dethrone the dollar, and it is not a BRICS nation. It is the United States. President Joe Biden is China’s and Russia’s biggest ally in “dedollarizing” the world.
Russia’s ruble, although showing surprising strength of late, is tied to a country in long-term—and seemingly irreversible—decline. Moreover, the Russian Federation, thanks to its aggression and barbarism in Ukraine, is cementing its role as a pariah.
Who wants to hold a weak Chinese currency that is racing toward the edge of the cliff?
Furthermore, Xi Jinping, the Chinese ruler, believes in “absolute” control of every aspect of society. The idea of free convertibility, therefore, is almost certainly anathema to him. So until China completely abandons its model of economic development and removes Xi as ruler, the renminbi cannot dethrone the dollar. The Chinese failure to make their currency widely acceptable means, as a practical matter, the BRICS currency will never get off the ground.
What are the attributes of a global reserve currency? It must be stable, it must be underpinned by a large and strong economy, it must be freely convertible, and it must be used widely.
Americans should not remain overconfident. The only reason the greenback is still the world’s reserve currency is because there is no practical alternative. China and Russia, however, are busy trying to figure out how to engineer a replacement.
“The issue of creating an international reserve currency based on a basket of currencies of our countries is being worked out,” said Vladimir Putin in June, at a meeting of the BRICS—Brazil, Russia, India, China, South Africa—grouping.