BRIC states attack dollar

The heads of state of the BRIC states - Brazil, Russia, India, China and South Africa - have agreed at a meeting held on Thursday on the Chinese island of Hainan to lend each other money in their own respective national currencies. In doing so they are launching an attack on the US dollar as base currency, writes the Catholic daily Avvenire: "The BRIC states are united by their economic growth and their desire to curb the West's dominance regarding the distribution of global wealth. … At their third meeting the five heads of state have now managed to find a common denominator that will allow them to speak with one voice. They want to deprive the dollar of its key role in the global currency system, especially now that the US currency has been destabilised as a result of the enormous budget deficit … . The criticism is nothing new. For two years now the dollar has been on trial. What is new is the currency cooperation strategy that is aimed at freeing the emerging economies step by step from their dependence on the American currency."

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