In recent weeks there has been an event on the stage of global finance, that impact will be felt for years to come. Could lead to a large devaluation of dollar assets to levels that we know for the currencies of emerging countries.

Five nations - Brazil, Russia, India, China and South Africa (BRICS) - are giving birth toits own financial system around a new bank for the exclusive use of these nations. They aim to establish convertibility of their currencies (real, ruble, rupee, renminbi and rand) and build a long-term financial covenant between them. But do not think that this is only one version of "emerging markets" of the euro zone. These future leder of the world economy, are opening the door to emerging market companies because they can challenge Western giants in their respective sectors. There are three reasons why these countries are betting on the decline of the U.S. dollar and the decline of American influence in the world:

1. The BRICS are preparing to take the leading position in the control of the world economy. The so-called BRICS countries account for almost half the world population. Two of them are already among the top five economies in terms of purchasing power parity. Four are in the top ten. The new financial plan, strengthening financial cooperation between them, allow them to make big voice in the management of the International Monetary Fund (IMF). The new bank is being born will facilitate transactions with other countries using local currencies instead of the dollar.

2. The new bank will have both political and economic. Not delude ourselves that the new entity is only for trade in agricultural products and natural resources. According to Reuters, Brazil was about to buy from France the new jet fighter "Rafael", to give it that came with his army. If the deal goes through, will add to India's decision to buy 126 fighter planes from the same company. India and Brazil are also discussing a military agreement. Finally, India will soon be a power with nuclear submarines, which are supplied directly from Russia.

3. They are the best companies from emerging countries are winning the challenge on the technological frontier markets.

These new developments in the global financial landscape, will create many new investment opportunities for some, others strengthen and naturally eliminate operators that do not quickly understand new balances that are being born.

SOURCE: Uncommonwisdomdaily

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