US dollar ‘cannot be trusted,’ former IMF executive tells RT

US dollar ‘cannot be trusted,’ former IMF executive tells RT

RT

The dollar-based international monetary system is becoming increasingly “dysfunctional,”prompting BRICS countries to consider creating their own currency, Brazil’s former representative at the International Monetary Fund (IMF), Paulo Nogueira Batista Jr., has told RT

According to Batista, even though the greenback will remain an important global legal tender, the currency can no longer be trusted.    

Speaking ahead of the 15th BRICS summit in Johannesburg, the Brazilian economist said that US-led financial institutions are not addressing the needs of developing countries. He pointed to “growing dissatisfaction” among emerging market economies with the way that existing dollar-based institutions such as the IMF and the World Bank work.     

Officially known as the New Development Bank (NDB), the organization is a multilateral financial development institution established by the alliance of major emerging economies, comprising Brazil, Russia, India, China, and South Africa in 2014.  The economist noted that the NDB was created by and for emerging economies without the participation of advanced countries, and claimed it is more “Global South-oriented than the World Bank can ever be.”    

 “When the US does what it does [by] taking advantage of its role as the issuer of the dominant currency, other countries are uncertain as to whether they can continue using the dollar as they have been using,” he warned.     

Batista insisted that the multipolar world would lead to the reduction of the role of Western currencies.