Why it Matters: In a bold stride away from the U.S. dollar, BRICS — a coalition of emerging economies — is rapidly shifting towards using their own currencies for global trade. This move, part of a growing trend towards de-dollarization, signals a significant change in the global economic landscape. To learn more about BRICS you can check out this article from last year.
BRICS: Expanding and Evolving
The Quick Catch-Up: Initially consisting of Brazil, Russia, India, China, and South Africa, BRICS has become a synonym for rising economic powerhouses. In January 2024, the group welcomed five new members: Saudi Arabia, the United Arab Emirates, Egypt, Iran, and Ethiopia. This expansion not only diversifies the bloc’s geographic and economic footprint but also strengthens its stance against dollar dominance.
A New Wave of Members
The Plot Thickens: Beyond the existing members, a surge of interest from 16 additional countries has emerged, all eager to join this anti-dollar alliance in 2024. This move isn’t just a ripple – it’s a tidal wave reshaping the contours of global finance.
ASEAN Aligning with BRICS?
A Game-Changing Alliance: Last summer, the 10 ASEAN nations (Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Vietnam) agreed to ditch the dollar in favor of local currencies for cross-border settlements. Their potential inclusion in BRICS could be a game-changer, melding two powerful blocs and further eroding the greenback’s clout.
Beyond ASEAN: A Worldwide Development
Putin’s Operation: One of the main figures in BRICS, Russian President Vladimir Putin, has publicly asked more nations to join the group. This invitation, which was alluded to at the 16th BRICS meeting, may herald a new period of growth, especially in the Middle East and Africa. Nigeria, Pakistan, Iraq, and Turkey are among the best possibilities for this change.
The Final Word
Next Up: The world is watching as the BRICS 2024 summit draws near. The possible addition of these 16 additional nations signifies a realignment of global economic power as well as a shift in preferred currencies. The departure from the US dollar, which was once seen to be the foundation of global trade, represents a sea change in the geopolitical and economic story of the twenty-first century. Pay attention to this; it’s not simply economics; history is being made.
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