Saudi Arabia has officially joined BRICS, the alliance of emerging economies, a move that has piqued the interest of numerous developing nations. This development has sparked discussions about the potential ramifications for global trade dynamics, particularly regarding the dominance of the US dollar.
The inclusion of Saudi Arabia has led to a surge in interest from other developing countries to become part of the BRICS alliance. The reasons behind this growing attraction towards BRICS lie in concerns over mounting U.S. dollar debt and the imposition of sanctions by the White House on emerging economies.
The prospect of more countries settling trade in their local currencies, as advocated by BRICS, poses a significant threat to the supremacy of the US dollar. A shift of this nature would have profound implications for various sectors in the United States.
According to CNN, a total of 34 countries have expressed their desire to join BRICS as of February 1, 2024. South Africa’s Foreign Minister, Naledi Pandor, confirmed this development during a recent press conference. However, specific details regarding the identities of these countries were not disclosed during the joint press briefing.
The mounting interest from developing nations to align with BRICS reflects their eagerness to adapt to evolving financial landscapes. BRICS is leading a global transition away from reliance on the US dollar towards prioritizing transactions in local currencies. This paradigm shift poses a direct challenge to the established financial order traditionally dominated by Western powers.
The overarching goal of the BRICS bloc is to establish a new world order characterized by multipolarity, effectively sidelining the US dollar. Consequently, the forthcoming years will be crucial in determining the fate of the US dollar, with developing countries increasingly prioritizing their own currencies. The next decade could witness a significant struggle as the US dollar fights to maintain its status as the global reserve currency.