When Coronavirus first broke out in Wuhan Province inside China in December 2019, nobody expected that it would eventually lead to a major shift in global order.
China, Russia, and Pakistan have teamed up with other five countries with the aim of finding ways of dumping the US dollar and never use it for international trade.
The eight-member countries of the Shanghai Cooperation Organization (SCO) have adopted a plan to conduct bilateral trade and investment and issue bonds in local and national currencies instead of US dollars.
Shanghai Cooperation Organization (SCO) was established in 1996 by China, Russia, Kazakhstan, Uzbekistan, Kyrgyzstan, and Tajikistan. In principle it is a Eurasian political, economic, and security alliance.
On March 18, 2020, Finance Ministers from member countries were summoned in Moscow, Russia.
Russia, as chairman of the alliance, called for suggestions from all member states for trade and investment in local currencies.
A system of mutual settlement of national currencies was the center point of discussion for as member countries of the SCO.
This Moscow meeting was also attended by Iran, Afghanistan, Belarus, and Mongolia in capacity as observer countries of the SCO. They also wish to join the alliance.
This SCO alliance accounts for approximately half of the world’s population, a quarter of the world’s GDP, and about 80% of Eurasia’s landmass. Member states have a population of nearly 1.5 billion people.
Economic analysts argue that if the trade and investment between the member states of the SCO alliance start, it will strengthen national currencies of member states and promote mutual trade and investment.
Reports say the US dollars and pounds will be deeply weakened.
“Every country that participates in promoting an alternate to US dollar standard will be in the crosshairs of US economic and military war machine. Just ask Libya and Iraq what that feels like,” Sohail from Pakistan says.
John Roberts, the US Chief Justice, argues that all these things will do little to decisively end the domination of the West and the hegemony of the United States in particular.
“Major players should go over to a gold or silver backed, non-fiat currency and displace the United States dollar as the world’s reserve currency and preferred primary currency for international trade, and their international financial institutions have carry the same clout as the IMF, World Bank, BIS,” Roberts says.
A commentator only identifying himself as Mathew, argues that let’s first see some transparency in Russia, China and Pakistan business dealings and accounting process.
“China has proved to the world that it’s neither trustworthy, nor credible. This coronavirus outbreak itself is more than enough for the entire humanity to outcast China from all future business deals,” he says.
According to John Greenfield, Editor of Streetsblog of Chicago, isolating the USA is the best thing that can happen to his country.
“We were way ahead in manufacturing until other countries did it cheaper. US has always built quality products that worked and lasted a long time and now we buy cheap foreign crap that breaks every 3-5 years,” he says.
He adds that this alliance is among the changes that will help bring manufacturing back home and become more creative, more productive and more self-sufficient, “We also will wean ourselves of foreign dependence.”