The BRICS alliance, standing for Brazil, Russia, India, China, and South Africa, is increasingly becoming a beacon of hope for emerging economies.
As of now, over 40 nations have shown a desire to join this burgeoning bloc, illustrating the potential power shift on the global stage from the U.S. led West to a more diversified economic hemisphere.
BRICS’ rising influence
South Africa’s primary diplomat handling relations with BRICS, Anil Sooklal, recently announced this growing interest at a press meeting in Johannesburg.
The interest comes at a crucial time when the BRICS summit is being eagerly anticipated, set to take place from August 22-24, despite Russian President Vladimir Putin’s absence due to legal complications.
At the heart of this summit’s agenda lies the question of the bloc’s expansion. With countries from the global south seeking to join BRICS, the focus will be on how to best manage this growing club while challenging the U.S.-led hegemony in global affairs.
Countries such as Argentina, Iran, Saudi Arabia, the United Arab Emirates, Cuba, the Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan are among those expressing interest.
The South African government views BRICS as an opportunity to advocate for the developing world, signaling a potential shift in the geopolitical landscape.
What’s up, U.S.?
Given this groundswell of interest, the economic impact cannot be ignored, particularly for the United States. Should BRICS successfully launch its new currency, the U.S. dollar may be at a historical crossroads, facing a potential decline in its long-held dominance.
Eight major U.S. financial sectors could feel the impact of this potential development. These sectors include banking and finance, oil and gas, commodities, production and consumption, technology, tourism and travel, the foreign exchange market, and international trade.
Each of these is intricately tied to the dollar, and any seismic shift in geopolitical dynamics could induce a ripple effect across these industries. If banking and finance were to suffer, the fallout could impact the commodities market.
This domino effect could further extend to foreign exchange and international trade, destabilizing the dollar’s stature. Moreover, a reduction in the U.S. dollar’s clout could lead to a decrease in production and consumption.
If the BRICS currency gains traction in the oil and gas trade, it could deliver another blow to the U.S. dollar. Therefore, the dollar’s future, and by extension, the American economy’s fate, may depend on how well the BRICS bloc establishes its new currency.
The very fact that 22 countries have formally sought to join BRICS, with an equal number expressing informal interest, speaks to the group’s growing global relevance.
With BRICS accounting for 23 percent of global GDP and 42 percent of the world’s population, it’s undeniable that the current is shifting.
The United States, accustomed to leading the world, may need to pay close attention to the potential realignment of global powers and plan accordingly.
