It is strongly recommended that you read two of my previous articles on the gold-based BRICS Currency that I call the CTCU (Common Trade Currency Unit).
This article assumes that you already have a good understanding of the foundation and composition of the new BRICS CTCU gold-based common trade currency.
Here are my two previous articles explaining the BRICS CTCU:
This is going to be a lot to digest. But that’s ok. It took me months to figure out what you’re about to read.
BUT DO NOT BE HESITANT OR CONCERNED ABOUT UNDERSTANDING ALL OF THIS AT ONCE.
Keep studying it and join my Telegram Channel to ask questions. I do my best to answer member questions on a timely basis.
Here’s the link to join my Telegram Site: https://t.me/GCR_RealTimeNews
DISCLAIMER: THIS ARTICLE IS FOR INFORMATIONAL PURPOSES ONLY. I AM NOT A FINANCIAL ADVISOR. THIS IS NOT INVESTMENT ADVICE. I AM NOT ENDORSING OR RECOMMENDING THE PURCHASE OF ANY CURRENCY WHATSOEVER. ALWAYS CONSULT A PROFESSIONAL FINANCIAL ADVISER.
About the CTCU and Currency RVs
As the BRICS Alliance continues expanding and move closer to the introduction of their gold-backed Common Trade Currency Unit (CTCU), the global financial landscape is poised for a transformative shift.
This new system, aimed at countering the dominance of traditional fiat currencies like the US Dollar and the Euro, promises to significantly revalue the currencies of countries within the BRICS alliance.
This article explores the incredible implications of this new financial paradigm, detailing the process and calculations behind the anticipated revaluation.
Using the variables and formulas explained (in detail) further down in this article, this is how the Indian Rupee RVs against the US Dollar once the BRICS CTCU gold-based currency comes online.
Here are the basic assumptions used to determine the RV’d exchange rate:
- Price of Gold in US Dollars on the SGE (Shanghai Gold Exchange) This price per gram is assumed atthe time the BRICS CTCU comes online but it could be higher: $80/gram or $2,500/ounce.
Note: The price has already hit $78.86/gram on May 20th this year on the SGE. - Gold backing of the CTCU: 40% or 0.4 grams per CTCU. This gold percentage has been mentioned repeatedly by the really smart folks planning the structure of the CTCU.
- The native currency component of the INR withing the new CTCU: 60%
- The Pre-CTCU exchange rate of the INR to the US Dollar: 83.58 INR per USD or 1.2 cents per INR (this is the most recent rate)
- The RV’d exchange rate of the INR to USD after the gold-based CTCU is in place and operational: 1.73 INR per USD or 57.7 cents per INR.
Meaning the Indian Rupee exchange rate will RV from it’s current 1.2 US cents/INR to 57.7 US cents/INR in US Dollar terms. This is a 4,708.33% percent increase in the Rupee’s exchange rate against the US Fiat Dollar.
This is just one currency example based on the calculations and variable defined below.
In my next article, I will do the calculations for the Iraqi Dinar, Vietnamese Dong (VND) and a few other currencies.
There are a few more variables involved for these currencies since they are artificially depressed and will go through a process of removing the zeros from their current note denominations.
Here are all the details you need to know to understand how I calculated this RV rate for the INR.
Understanding the Variables Needed to Calculate the New RV’d Gold-based Exchange Rate for any Currency
To help you understand how to calculate the change in exchange rates when a new gold-backed currency system is introduced, let’s break down the key variables you need to consider in simple terms:
- Gold Price: This is the current price of gold per gram from the Shanghai Gold Exchange (SGE). Think of it as the store of value of a small piece of gold, like a gram.
- Gold Component in CTCU: This is the amount of gold included in one unit of the new currency (CTCU). It represents the gold value in each unit of the new currency.
- Currency Component in CTCU: This is the portion of the new currency that comes from the local money of a BRICS country, like the Indian Rupee.
- Pre-CTCU Exchange Rate: This is the exchange rate of the local money to the US Dollar before the new gold-backed currency system is introduced. It shows how much local money you need to get one US Dollar before any gold-based currency system changes.
- Post-CTCU Exchange Rate: This is the new exchange rate of the local money to the US Dollar after the new system is in place. It indicates how much local money will be needed to get one US Dollar after the revaluation.
- Amount of Local Currency Held: This is how much of a specific country’s currency you have in your possession before the new system is introduced.
Putting It All Together
When the new gold-backed currency system is introduced, these variables determine how much your specific currency holdings will be worth compared to the US Dollar.
The price of gold from the Shanghai Gold Exchange and the amount of gold in the new currency set a base value for each unit of the new currency.
The portion of the new currency made up of local money combines the gold value with the local currency value. The old exchange rate shows the local money’s worth compared to the US Dollar before the change, while the new exchange rate shows its worth after the change.
Knowing how much country currency you have helps you understand how its value changes with the new gold-based system.
By considering these factors, you can see how the introduction of a new gold-backed currency would significantly increase the value of local money compared to major fiat currencies like the US Dollar.
This helps illustrate the potential financial impact and the revaluation (RV) that is on its way.
The Bottom Line
The planned introduction of the BRICS CTCU has the potential to revolutionize the global economic system, creating a multi-polar financial landscape where traditional fiat currencies and gold-backed CTCUs coexist. For countries within the BRICS alliance, this shift promises significant currency revaluation and enhanced economic stability.
As the BRICS nations prepare for this monumental change, the world watches closely, anticipating a new era of financial innovation and economic rebalancing. Holders of BRICS currencies should stay informed and consider the potential implications of this transformative development on their financial strategies and investments.
Detailed Math for Readers Who Want to Go Deep into the Calculations in Determining the New RV Exchange Rates
The CTCU is designed as a hybrid currency backed by tangible assets, primarily gold. Each CTCU unit consists of a specific amount of gold and the remaining value derived from the currencies of BRICS nations.
You can create a simple spreadsheet using these variables and formulas to play around with the numbers.
I realize these variables and formulas appear small on mobile devices. However, simply click on any of the mathematical or equation images below to get a larger view.
It’s best to view these calculations and equations on a laptop or desktop PC with a larger screen.
Pre-CTCU Exchange Rates and Initial Holdings
Post-CTCU Revaluation: Hypothetical Scenario
Summary of all the Variables Need to Calculate the RV’d Exchange Rate of Any Currency
All Calculations Needed to Arrive at the New RV’d Exchange Rate
