The leaders of the BRICS nations will gather in Johannesburg this week to discuss strategies for reducing their dependence on the US dollar. South African Deputy President Paul Mashatile emphasized the bloc’s commitment to curb reliance on the greenback, stating that they are not here to compete with the West but rather want their space in the global business arena. The BRICS alliance, consisting of Brazil, Russia, India, China, and South Africa, has already made progress in reducing the share of the US dollar in mutual settlements by increasing payments in their own currencies.
One of the ideas floated by BRICS members is the creation of a common currency for intra-member trade. This move would further enhance their efforts to decrease reliance on the US dollar and promote greater economic cooperation within the bloc. With the BRICS countries currently accounting for 40% of the world’s population and almost a third of the global economy, any actions they take to reduce their dependency on the dollar will likely have a significant impact on the international financial landscape.
In addition to discussing ways to eliminate dependence on the US dollar, the BRICS leaders will also explore the possibility of expanding the alliance. An enlarged bloc could represent approximately half of global output by 2040, doubling the share of the Group of Seven (G7) countries, which consists of the world’s most developed nations. This expansion would not only strengthen the economic influence of the BRICS nations but also provide a platform for collaboration and coordination on various global issues.
The 15th BRICS summit, scheduled to take place in Johannesburg from August 22 to 24, provides an opportunity for member countries to deepen their cooperation and set the agenda for future growth. More than 20 countries have formally applied to join BRICS, signaling the increasing attractiveness and influence of the alliance. Countries such as Argentina, Algeria, Egypt, and Türkiye have expressed their interest in becoming members, indicating the potential for further expansion in the future.
The BRICS alliance has emerged as a significant player in the global economy and is gaining recognition for its efforts to establish an alternative financial system that reduces reliance on traditional Western-dominated institutions. By diversifying their currency settlements and exploring the creation of a common currency, the member countries are aiming to enhance their economic sovereignty and ensure a more balanced and equitable global financial order.
As the BRICS countries continue to assert their position in the global discourse, it is becoming clear that their actions have far-reaching implications for the international financial landscape. Their pursuit of alternative currencies and expansion of the alliance will reshape the existing hierarchy of economic power and establish a more multipolar world. As the BRICS summit unfolds in Johannesburg, the international community will closely watch the outcomes and assess the implications for the future of global finance and economic cooperation.
In conclusion, the BRICS nations are coming together to discuss strategies for reducing their dependence on the US dollar, exploring the possibility of creating a common currency, and expanding their alliance. These efforts reflect their determination to establish a more balanced and equitable financial system and to secure their space in the global business arena. As the BRICS countries take collective action, they are reshaping the global financial landscape and paving the way for a multipolar world.