Nineteen countries have applied to join the BRICS in advance of this year’s annual summit, indicating that the group’s influence will only continue to rise. In addition, the summit will take place in South Africa this summer, and several countries are vying for invitations. BRICS could soon turn into BRICS-Plus with many nations waiting to join.
What is BRICS?
BRICS is not just another group of letters mashed together. It is a global powerhouse, a league of extraordinary nations with a shared vision for the future. The acronym stands for Brazil, Russia, India, China, and South Africa. It is made of five countries that are diverse in geography, history, culture, and politics, but united in their pursuit of common goals.
BRICS seeks to promote the common interests of its members, enhance their economic growth and competitiveness, as well as contribute to global stability and prosperity. The organization represents over 41% of the world’s population and 31.5% of global GDP.
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One of its main goals is to create a more democratic global order and challenge Western dominance in shaping global rules and norms. BRICS also aims to foster innovation and technological progress, particularly in fields such as renewable energy, artificial intelligence, biotechnology, and space exploration.
Despite challenges as well as contradictions arising from different levels of development, political systems, and foreign policy priorities, BRICS demonstrates the power of dialogue, cooperation, and respect. It shows that countries with different backgrounds along with ideologies can work together toward a common future. Now many countries are running to BRICS. Why is that?
Countries are crazy to join BRICS
The BRICS group announced its willingness to accept new members earlier this year. Since the group’s GDP has already exceeded that of the G7, its further growth has the potential to alter the global power structure. In particular, as they persist in their quest to displace the US dollar as the global currency used for international trade.
The BRICS nations have received membership applications from the aforementioned 19 countries ahead of its annual conference in South Africa. Some of the countries eager to join are Argentina, UAE, Indonesia, Egypt, etc. That is a whopping interest. Bloomberg highlighted the growing list of applicants after BRICS had expressed openness to grow.
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The South African ambassador, Anil Sooklal, explained that “thirteen countries have formally asked to join and another six have asked informally.” It seems that the topic of growth will be a focal one. Ultimately, the pressure to join may make BRICS expansion inevitable. What that means for its war against the US dollar is questionable.
Will BRICS dethrone the US dollar?
Many countries are ending their dependence on USD. For example, Indonesia follows the BRICS de-dollarization idea and is moving away from using the US dollar in international trade. The desire of foreign nations to become economically independent of the United States is not new.
Dethroning of the US dollar has been in talks since the 1960s, but without any success. All the rhetoric hasn’t led to any action. The estimated percentage of international trade conducted in US dollars is 84.3%, with the Chinese yuan accounting for only 4.5%. This could change with the arrival of a new currency issued by the BRICS.
Such a currency has the potential to unseat the US dollar as the reserve currency of BRICS nations. This hypothetical currency has the ability to overthrow or at least disturb the seat of the throne held by the US dollar, unlike competitors proposed in the past, such as a digital yuan.
Given the burden of issuing the world’s primary reserve currency, the US might actually benefit from the dollar’s decline. It is not ideal for the rest of the world to be so reliant on the American monetary system and the Federal Reserve‘s domestically oriented aims in a world economy where the US is no longer as dominant as it once was.
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The world’s economy would benefit greatly from less US influence on their currencies, monetary policies, and trading patterns. However, the fact that emerging powers that do not include the US have lofty goals for themselves may not have any bearing on the current economic order. In any case, the BRICS and BRICS-Plus countries face a number of serious problems of their own.
Dethroning the US dollar may be the common goal of the BRICS and other countries on the waitlist to join the powerful group. However, the potential currency by the BRICS hasn’t yet been issued and the greenback’s dominance is still in the play until something crucial happens. But a big change might actually be on the way as the US is losing its world dominance.
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