EXCLUSIVE: BRICS Just Expanded! New Members Revealed!

The BRICS, an acronym that unites five major emerging economies – Brazil, Russia, India, China, and South Africa, has long been a symbol of economic prowess and global influence.

Recently, during the 15th BRICS Summit held in Johannesburg, South Africa, the organization made waves by expanding its membership to include six new countries.

In this blog post, we’ll explore this significant development and its implications for the BRICS alliance and the global economy.

The 15th BRICS Summit: A Landmark Event

From August 22 to 24, 2023, the 15th BRICS Summit brought together the original BRICS member nations for a pivotal event in Johannesburg, South Africa.

During this gathering, the alliance decided to open its doors wider, welcoming six new member countries into the fold. These new additions include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).

A Growing Interest: 22 Countries Seek BRICS Membership

The decision to expand BRICS did not happen in isolation.

Reports suggest that a total of 22 countries have expressed their interest in joining the BRICS alliance.

What’s particularly striking is the geographic diversity of these aspiring members, hailing from Asia, South America, and Africa.

This eagerness to be a part of BRICS underscores the organization’s growing importance on the global stage.

A New Era: Membership Begins in 2024

While the announcement of new members is undoubtedly significant, the practical implementation of this expansion is set to take place on January 1, 2024.

Starting from this date, the new BRICS members will be officially integrated into the alliance, marking the beginning of a new era in the organization’s history.

The Role of BRICS Foreign Ministers

With expansion on the horizon, the BRICS member nations have assigned their respective Foreign Ministers a crucial role.

They are tasked with enhancing the BRICS partner country framework, identifying potential partners among the aspiring member countries, and presenting their findings at the upcoming summit scheduled to be held in Kazan, Russia, in 2024.

This strategic move ensures that the integration of new members is well-coordinated and aligns with the objectives of the BRICS alliance.

BRICS: A Challenge to the Dominance of the US Dollar

One of the most intriguing aspects of this expansion is the stance taken by two BRICS powerhouses, China and Russia.

Both nations have expressed their intent to reduce their dependence on the US dollar as the primary international currency for trade.

Instead, they seek to promote the use of alternative currencies, possibly within the BRICS framework.

Recent developments at the 15th BRICS Summit suggest that this intention is gaining momentum.

Russia, in particular, has been vocal about the need for a fresh BRICS currency, one that may potentially be backed by gold, to serve as a global medium of exchange among BRICS member nations.

This ambitious proposal could mark a significant shift in the global financial landscape.

The Implications of a BRICS Currency

The idea of a BRICS currency, potentially backed by gold, raises several intriguing questions about its potential impact on the international monetary system.

Let’s look at how US dollar dominated the world and then What Brics Currency is.

After that, we will see some key considerations that has to be assessed for new currency BRICS is proposing.

How US $ became world currency?

After the World War II, the dollar’s worldwide significance as a trade and reserve currency has provided the United States with advantages such as streamlined foreign borrowing and enhanced influence through financial sanctions. The Bretton Woods conference was the milestone conference to set US dollar to become world currency where forty-four nations came to a consensus for the establishment of the IMF and the World Bank. There are a few reasons behind US Dollar becoming world currency:

• Stable value
• Size of the US economy
• Global geopolitical influence of US

Furthermore, no other nation possesses a debt market comparable to the United States, which amounts to approximately $22.5 trillion

What is Brics currency?

Since Russia and China are already practicing trading in their local currencies, they would presumably like to make their currency international as the US Dollar.

However, it is likely that a new currency might be introduced if the US dollar has to be challenged and probably be replaced.

Russia has advocated for a fresh BRICS currency, potentially backed by gold, to serve as a global medium of exchange among its members, as an alternative to the dollar.

1. Reducing Dollar Dominance

The primary goal of introducing a BRICS currency is to reduce the dominance of the US dollar in international trade. This could potentially challenge the dollar’s status as the world’s primary reserve currency.

2. Strengthening BRICS Unity

The introduction of a common currency could further strengthen the unity and economic ties among BRICS member nations. It would create a more integrated economic bloc capable of exerting greater influence on the global stage.

3. Global Financial Stability

The inclusion of gold backing in the proposed BRICS currency could add an element of stability and confidence in the international financial system, potentially mitigating currency volatility.

4. Geopolitical Ramifications

A shift away from the US dollar as the dominant global currency could have geopolitical implications, influencing the balance of power and alliances in the international arena.

Conclusion: BRICS Expansion and the Future of Global Finance

The expansion of the BRICS alliance to include six new member countries marks a significant milestone in the organization’s history.

It reflects not only the growing interest in BRICS but also the potential for a shift in the global financial landscape, with China and Russia leading the charge to reduce dependence on the US dollar.

The proposal for a BRICS currency, possibly backed by gold, adds a layer of complexity to the international monetary system.

While it’s too early to predict the full extent of its impact, it certainly invites us to consider a future where the BRICS alliance plays a more prominent role in shaping global finance.

As the world watches the evolution of BRICS and the unfolding of this ambitious currency proposal, one thing is clear: the BRICS alliance is no longer confined to its original five members.

It is a dynamic force with the potential to reshape the world of economics and finance in the years to come.