West News Wire: Anil Sooklal, South Africa’s BRICS ambassador, hinted that the alliance is expected to expand this year since more than 30 nations have openly and unofficially expressed interest in joining.
According to the most recent report, Afghanistan, Algeria, Argentina, Bahrain, Bangladesh, Belarus, Egypt, Indonesia, Iran, Kazakhstan, Mexico, Nicaragua, Nigeria, Pakistan, Saudi Arabia, Senegal, Sudan, Syria, the United Arab Emirates, Thailand, Tunisia, Turkey, Uruguay, Venezuela, and Zimbabwe are among the nations that are prepared to join the BRICS alliance.
The United States and other Western countries will take a hit from the development when their GDPs drop to that of the BRICS.
Market watchers believe the move by Zimbabwe is aimed at neutralising an insatiable appetite for the US$ among its citizens, a development which authorities blame for continued economic shocks.
BRICS is an acronym for the powerful grouping of the world’s leading emerging market economies, Brazil, Russia, India, China and South Africa. The BRICS mechanism aims to promote peace, security, development and cooperation.
Plans by the community to replace the US$ in international trade are set to reach a new high when discussions on the feasibility of introducing a common currency take place at a summit to be held in South Africa later this year.
In order to settle international trade using the new BRICS currency, China and Russia are accelerating the development of their “state-of-the-art” payment infrastructure technologies. Before the following BRICS meeting, Igor Shuvalov, the chairman of Russia’s National Economic Development Institution VEB.RF, asked the leaders of both countries to strengthen the payment system.
The brand-new payment method, which has not yet been released, will incorporate the BRICS currency when it comes time to settle international trade. For the smooth transmission of funds on a global scale, the Shanghai Cooperation Organisation (SCO) group will also be incorporated into the system. This makes trading inside the group of five countries and with other nations easier and puts the BRICS and SCO currencies on the front foot.
“We call on the Chinese partners and the government of the Russian Federation to take proactive measures. The ‘ruble/yuan’ combination as well as the most significant transactions in SCO and BRICS currencies require an independent and effective payments infrastructure, according to Shuvalov.
Shuvalov emphasised that following the BRICS summit, the new payment infrastructure which boasts “cutting-edge” technology could be unveiled. The following BRICS summit will take place in August 2023 in Cape Town, South Africa. Brazil, Russia, India, China, and South Africa, an alliance of countries, will collectively choose a new currency for international trade.
Russia and China are moving forward forcefully with their plan to unseat the US dollar as the world’s reserve currency. India’s scepticism of China’s accomplishments has generated rifts in the BRICS alliance as a result of the development.
India thinks China is advancing its goal of becoming a world superpower by exploiting the BRICS alliance as a pawn.
But the BRICS conference will be the centre of attention, and it will determine the future of the US currency. A new BRICS currency might devastate the U.S. dollar and have an impact on a few American financial industries.