• Sun. May 26th, 2024

Is ZiG in sync with BRICS’ golden path?


Apr 17, 2024 #ZiG

By ETimes

Assuming that Zimbabwe has the resources to contribute as a paid-up member, there could be benefits to joining the New Development Bank (NDB).
This comes as the southern African nation has already applied for membership in the BRICS’ NDB under the Brazil, Russia, India, China and South Africa BRICS.
However, its history as a heavily indebted nation and poor macroeconomic performance may likely inhibit access to loans from the NDB.
Furthermore, its lack of own currency, which the NDB seeks to promote in its lending to member states, could also be problematic and so would the performance of Zimbabwe’s export revenues, a good source to service the potential debt.
Should Zimbabwe’s application for membership be accepted and it is able to source long-term and competitively priced loans from NDB, this could help the economy grow if such loans are targeted for the productive sector rather than consumption.
This would also show that the re-engagement process with non traditional (non-Western) nations is bearing fruit and rendering Western sanctions less powerful.
Basically, this is a positive development in strengthening south-to-south cooperation, which may also help the West revise their position regarding their policies to sanction those countries that are deemed unfriendly, to include Russia, China, Venezuela, Cuba and most likely South Africa, following their anti Zionist apartheid positioning.
The country has been trying to wean itself off the US dollar.
If successful, Zimbabwe Gold may be able to replace some, if not all, transactions that currently take place with the US dollar. Also, authorities should minimise their appetite for the greenback in order to create demand for ZiG.
ZiG may have come at the right time when BRICS is making progress on its golden path.
BRICS countries have settled on using gold as the basis for international exchange, a role previously taken by dollars and euros.
Foreign governments wanting to liberate themselves from reliance on the US dollar are anything but new.
Murmurs in foreign capitals about a desire to dethrone the dollar have been making headlines since the 1960s. But the talk has yet to turn into results.

By ETimes

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