BRICSNew countries are expected to be announced as members of the BRICS alliance at the upcoming 2024 summit. The 16th summit is set to occur in the Kazan region of Russia in October this year. The alliance plans to extend invitations to emerging nations that have shown a keen desire to become part of the bloc.
As per a statement from a Russian official, there are ongoing discussions regarding the expansion between Russia and the bloc.
BRICS set to explore new horizons
During an interview with TV BRICS, Sergey Ryabkov, Russia’s Deputy Minister of Foreign Affairs, shared insights on the increasing opportunities for new countries to become part of the bloc. He mentioned that the upcoming summit in Kazan this October will be a significant milestone in the collaboration among the BRICS countries.
In addition, although the bloc lacked experience in expanding at the beginning of 2024, there is a belief that they now possess sufficient knowledge to sustain their expansion efforts.
“It is worth mentioning that all the newcomers show great enthusiasm […] They are ready to work substantively and professionally on the agenda that the Russian Chairmanship has developed in consultation with all participants.” Sergey Ryabkov
These requirements will establish guidelines for interested nations on how to interact with the alliance. As of April 2024, approximately 35 countries have shown their interest in joining BRICS. While some individuals have officially submitted their applications to join the alliance, others have expressed their interest in a more casual manner.
In addition, as the BRICS continues to expand in 2024, the US dollar will face increasing pressure. Several nations are expected to decrease their dependence on the nation’s currency. The US dollar is currently facing significant challenges, and the de-dollarization efforts by the BRICS nations are further exacerbating the situation. When talking about the summit, Ryabkov adds,
“The summit is a new point of reference and an opportunity to build on the leaders’ decisions and agreements in the future. I think it will certainly emphasize not just the growing importance of BRICS, but also the policy-shaping function of the Russian chairmanship.”
BRICS transactions without the US dollar
BRICS is making progress towards eliminating the US dollar from all global trade and transactions by 2024. The bloc seeks to prioritize local currencies over the US dollar in order to bolster their domestic economies and businesses.
The alliance is also persuading other developing countries to adopt the practice of settling payments in local currencies for cross-border transactions.
China and Russia have recently signed a trade agreement that involves the use of their respective local currencies for transactions amounting to a staggering $260 billion. The trade deal is being established to facilitate the exchange of payments for the commodities bought by both nations.
China and Russia have decided to use the Chinese Yuan and the Russian Ruble for their payment settlements, rather than the US dollar.
The Chinese Yuan will be used to settle 95% of the $260 billion worth of trade. The remaining 5% will be paid in Russian Ruble and Euro. The development suggests a strong commitment from the BRICS alliance to advance the de-dollarization agenda.
“$260 billion worth of trade between China and Russia this year. But almost no US dollar will be used! It will be 95% Chinese yuan and Russian rubles. Maybe some euros are involved. This de-dollarization will soon be replicated among all BRICS+ members,” said an analyst.
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