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BRICS Summit Surprise: Xi Jinping’s No-Show and the Quest to Dethrone the Dollar

The BRICS Summit, notorious for its high-profile attendees, recently saw a major curveball thrown its way. In a move that caught many off guard, China’s President Xi Jinping pulled a no-show for a much-anticipated speech in South Africa. As you can imagine, in the world of international relations and economic alliances, a move like this isn’t just seen as unusual—it’s downright shocking.

The BRICS coalition—comprising Brazil, Russia, India, China, and South Africa—isn’t just any group. It’s a powerhouse collective that has been pushing the envelope, mulling over strategic expansions, and finding ways to reduce the towering influence of the U.S. dollar on global finances.

So, when all the other dignitaries, including Russia’s Vladimir Putin (who’s under an international arrest warrant), chimed in virtually or in person, and China’s top gun went conspicuously absent, eyebrows were raised.

Sure, Xi made a post-speech appearance at a dinner with the BRICS leaders, but the international community’s rumor mill had already started churning.

Stepping up to the plate in Xi’s stead was China’s Commerce Minister, Wang Wentao. He delivered what were meant to be Xi’s comments. And boy, did they pack a punch. There were some not-so-subtle jabs, with references to a certain nation’s “obsession with maintaining its hegemony” and attempts to thwart emerging markets. As the rhetoric went: “Whoever develops first becomes their target of containment. Whoever is catching up becomes its target of obstruction.”

Now, here’s the entrepreneurial investor’s takeaway. The BRICS nations have been playing a calculated game of financial chess, attempting to move away from the dollar’s overwhelming influence. They’ve been transacting with China’s yuan and are even toying with the idea of a new shared currency. If realized, this could present a significant shake-up to the U.S. dollar’s global supremacy.

But back to Xi’s absence. Speculations ran wild. Bonnie Glaser, an expert from the German Marshall Fund, pondered if something might be “amiss” with the Chinese leader. William Hurst of the University of Cambridge highlighted the unusual nature of the no-show, terming it “out of character.”

Yet, amidst this, the BRICS summit wasn’t all hushed whispers. Russia took the lead, with Putin throwing sharp criticisms towards the West, blaming them for a variety of global challenges, from the Ukraine conflict to inflation.

Though Beijing and Moscow aren’t formally tethered, their unified anti-Western sentiment was clear.

For those with a stake in global financial dynamics, this summit was a reminder: The tectonic plates of international currency dominance are shifting. And as always, savvy investors and entrepreneurs should keep an ear to the ground, ready to navigate these evolving terrains.