Growing Interest as 34 Countries Eye Joining BRICS Alliance in 2024

A wave of interest from developing nations signals a potential expansion of the BRICS alliance in 2024, with the upcoming summit scheduled for October in Russia’s Kazan region. According to India’s Foreign Affairs Minister S Jaishankar, more than two dozen countries are considering joining BRICS this year, reflecting a growing trust in the alliance and a desire to reduce reliance on the US dollar amidst a global debt crisis.

Jaishankar revealed in a recent press conference, “We tested it last year in the market, asking how many want to join BRICS. We got almost 30 countries who were willing to join BRICS. Clearly, 30 countries saw value in it; there must be something good with that.” This surge in interest comes as developing nations grapple with a staggering $34 trillion debt burden, primarily denominated in US dollars. The desire to mitigate this risk has prompted countries to prioritize their local currencies in trade transactions.

The recent inclusion of Saudi Arabia into BRICS has further fueled interest from other developing nations seeking alternatives to the US dollar. The Kingdom’s induction into the alliance is perceived as a response to mounting US dollar debt and White House sanctions against emerging economies. If the trend continues and more developing countries opt for settling trade in local currencies within the BRICS framework, the US dollar could face significant repercussions.

As of February 1, 2024, a total of 34 countries have officially expressed their interest in joining BRICS, as confirmed by South Africa’s Foreign Minister Naledi Pandor in a press conference. While Pandor did not disclose the names of these countries, the growing enthusiasm indicates a broader shift in financial dynamics, with developing nations aiming to position themselves favorably amid changing global economic landscapes.

The increasing attraction towards the BRICS alliance is part of a larger initiative to shift away from the dominance of the US dollar. BRICS aims to create a multipolar world order that prioritizes local currencies over the US dollar, challenging the traditional financial order controlled by Western powers. This paradigm shift could potentially jeopardize the global reserve status of the US dollar, setting the stage for a new era in international finance.

The next decade holds significant implications for the fate of the US dollar as developing countries increasingly prioritize their local currencies. The BRICS alliance, with its growing roster of interested nations, poses a formidable challenge to the established order, and the October 2024 summit may witness the formal inclusion of new members into this influential bloc.