In a move indicative of shifting global economic dynamics, Bangladesh has taken a bold step forward. Setting sights on becoming a part of the influential BRICS alliance (Brazil, Russia, India, China, and South Africa), Bangladesh is set to diversify its foreign relations and currency.
This action brings Bangladesh into an emerging coalition looking to counterbalance US currency dominance, creating ripples throughout the global economy.
Bangladesh’s strategic move for global influence
Being a part of BRICS could lead to significant economic developments for Bangladesh. The bloc, renowned for fostering economic cooperation and development among its members, holds immense potential for bolstering the country’s economy.
Membership could spur bilateral trade relations and infrastructure development, particularly with India, a fellow BRICS member.
However, these benefits aren’t without complexities. Joining the BRICS could also introduce new dynamics in Bangladesh’s bilateral relations with India.
Navigating these changing dynamics will necessitate strategic flexibility from both countries, with potential adjustments in their cooperation frameworks and engagement strategies.
How this pans out ultimately depends on several factors, including the terms of Bangladesh’s membership and the ambitions of both nations within the evolving BRICS framework.
BRICS membership: Opportunities and implications
Experts believe that Bangladesh’s BRICS membership could help diversify its foreign relations, a prospect that carries immense strategic potential. Currently, India and China, two BRICS countries, constitute almost 40% of Bangladesh’s imports, showcasing an existing economic synergy.
Joining the bloc could also increase Bangladesh’s access to resources. Bangladesh became a part of the New Development Bank (NDB), established by BRICS in 2021, and as a BRICS member, the country will have a stronger voice and greater access to the bank’s funds.
While the immediate benefits might not be readily apparent, the long-term advantages of BRICS membership can’t be underestimated. As BRICS actively works towards reducing US dollar dominance, Bangladesh’s involvement could be a powerful move in a larger global chess game.
At home, this move could enhance the image of Prime Minister Sheikh Hasina, particularly as the country faces international pressure for free and fair general elections.
Awaiting confirmation
The anticipation of Bangladesh’s BRICS membership gained momentum earlier this week following comments by the country’s Foreign Minister AK Abdul Momen.
The Minister announced that Bangladesh, along with Indonesia, UAE, and Saudi Arabia, has been invited to join the BRICS. If everything proceeds according to plan, these countries are expected to join the group at the BRICS Summit scheduled for August in Cape Town, South Africa.
This potential expansion of the BRICS could have considerable implications for the global economy, particularly the U.S. dollar. As more countries potentially adopt a new BRICS currency for international trade, the demand for the U.S. dollar could diminish.
Interestingly, Bangladesh has already set a precedent, being the first nation to join the New Development Bank post its founding members.
Whether the country will take the next leap and become a BRICS member is an eagerly anticipated decision, likely to be a highlight of the upcoming BRICS Summit.
