On Monday, January 1, Saudi Arabia, Egypt, the United Arab Emirates, Iran, and Ethiopia became members of the BRICS alliance.
At the 15th BRICS meeting in Johannesburg, South Africa, in August 2023, the five nations were scheduled to become members of the ganization. Argentina was invited as well, but at the end of December, they declined.
Brazil, Russia, India, China, and South Africa founded the BRICS group of rising nations in 2006; South Africa joined the group in 2010. Since then, it has developed into a crucial forum for collaboration between developing nations and emerging markets. The goal of Monday’s member doubling is to give the group more influence on the international scene.
Approximately 3.5 billion people live in the newly enlarged BRICS, and their combined GDP is valued at over $28.5 trillion, or roughly 28% of the world economy. The expansion of the organization may signal a change in the geopolitical environment, but experts are unsure if this would benefit or hurt the BRICS countries.
Differences within the group, according to some observers, might reduce the BRICS’ overall authority and decision-making ability. The BRICS nations do, however, hope that the expansion would provide developing economies more visibility and an opportunity to wean themselves on the US currency. The president of Brazil demanded in August of last year that the BRICS countries establish a single currency for investment and commerce with one another.
On Monday, Russia assumed the president of the BRICS, succeeding South Africa as the chair in 2023.Russia, which will preside the BRICS annual summit in October in Kazan, will do so under the theme “Strengthening Multilateralism for Equitable Global Development and Security” for a period of one year.
Vladimir Putin, the president of Russia, has declared that he will “spare no effort to ensure that […] we facilitate the harmonious integration of new participants” in endeavors and that BRICS will play a bigger role in the global financial system.
The Kazan area of Russia is set to host the second BRICS meeting in October 2024. Many more developing nations may be admitted to the BRICS at the 16th meeting; the expansion may be announced this year.
A group of countries that are prepared to trade in their own currencies instead of US dollars are being brought together by the alliance. As local currencies attempt to take the lead in the global economy, the US dollar is forced on the defensive by this effort.
Find out which US industries will be impacted by BRICS’ total abandonment of the currency in international commerce by reading this. This might cause hyperinflation in the United States and wreak havoc on the financial system there.
Currently, over 25 other nations are vying to join the BRICS in 2024. The developing countries hope that by fortifying their domestic currencies, they would unintentionally help their home economies.
By prioritizing their native currencies above the US dollar, emerging nations hope to avoid using it in commerce. To take advantage of this phenomena and engage in commerce with other like-minded member nations, one must join the BRICS bloc.
Anil Sooklal, the ambassador of South Africa to the BRICS, has revealed that around 25 nations have formally submitted their bids to join the group.He stated, “More than 20 countries have expressed interest in joining BRICS, while the same number have formally applied.”
According to Sooklal, there is a great deal of desire from emerging nations to join BRICS in 2024. The trend demonstrates how many countries wish to promote their own currencies rather than the US dollar. Consequently, with another phase of BRICS growth planned, 2024 may prove to be a turning point for the organization.
The more nations that start to reject the US currency, the more difficult it will be for the US to finance its deficit. In the currency markets, the US dollar will no longer be subject to the dynamics of supply and demand, and it will begin to drop.
