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In a powerful address at the BRICS Summit’s Call during the 15th BRICS Summit’s open plenary session, Chinese President Xi Jinping has issued a stern warning about the looming threat of a Cold War mentality. He believes this mentality continues to cast a shadow over the global stage.
Unity for Peace
President Xi emphasized the pressing need for the member countries of BRICS (Brazil, Russia, India, China, and South Africa) to unite in expanding political and security cooperation to safeguard global peace and tranquillity.
BRICS Summit’s Call: Fostering Collaboration
“The geo-political situation is becoming increasingly tense as the Cold War mentality persists, haunting our world,” President Xi Jinping cautioned. He called upon the BRICS nations to firmly adhere to the path of peaceful development and consolidate their strategic partnership.
Addressing the BRICS Summit’s Call, he explicitly underscored the critical significance of effectively utilizing key mechanisms. These pivotal mechanisms encompass the BRICS Foreign Ministers’ meeting and high-level representatives’ discussions specifically focused on national security.
Furthermore, President Xi emphasized the critical significance of mutual support concerning core interests among BRICS countries. He also highlighted the need for enhanced coordination, addressing both major international and regional concerns.
He emphasized the necessity for collaborative efforts to provide diplomatic solutions for pressing hotspot issues. This approach aims to effectively reduce tensions on the global stage.
Also read: Reducing U.S. Dollar Dependency: BRICS Summit’s Agenda
BRICS Summit: United for Equitable Governance
President Xi asserted the need for collective efforts to alleviate tensions on urgent international issues. He emphasized utilizing diplomatic means to lower the temperature, underscoring the gravity of the situation.
President Xi also called for an acceleration in expanding the BRICS group by inviting more countries to join.
He believes that a broader coalition would enable the pooling of wisdom and efforts. This pooling would ultimately lead to the creation of a more just and equitable global governance system.
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Economic Landscape and Currency Dynamics
The call for unity and diplomacy comes amid discussions about the potential impact of the Chinese Yuan on the global economic landscape.
Benn Steil, the Director of International Economics at the Council on Foreign Relations, dismissed concerns about the Yuan posing a significant threat to the dominance of the U.S. dollar.
Steil highlighted that the Yuan constitutes less than 3% of the world’s global reserves, in stark contrast to the U.S. dollar, which accounts for a substantial 59% of all global transactions in 2023.
“The Chinese renminbi, with its limited share of global reserves, does not pose a substantial challenge to the supremacy of the U.S. dollar,” Steil asserted.
He further emphasized that while other currencies have only marginal chances of challenging the U.S. dollar’s prospects of dominance, the true threat arises from the policies of the U.S. government and the Federal Reserve.
Steil pointed to recent instances like the federal debt ceiling standoff and the Fitch Ratings downgrade as examples of potentially detrimental governance.
In conclusion, the BRICS Summit’s Call serves as a platform for leaders to address pressing global challenges and reaffirm their commitment to peaceful cooperation, while economic experts weigh in on the potential impact of the Chinese Yuan on the global currency landscape.