The BRICS alliance is looking to uproot the US dollar’s hegemony and replace it with local currencies. The bloc wants to stop using the US dollar to settle cross-border transactions and is aiming to push local currencies ahead. BRICS wants to become a superpower and challenge the US and other Western allies in the global financial sphere.
Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade. The move will flood the American markets with dollar bills leading to hyperinflation in the homeland.
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Expert Says BRICS is a Superpower in the Energy Sector
Marco Fernandes, a researcher at the Tricontinental Institute of Public Research noted that BRICS constitutes 45% of the world’s oil reserves and 56% of gas reserves. He wrote that BRICS is a superpower in the energy sector and the US and Western allies don’t come close.
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Fernandes explained that BRICS member Russia alone accounts for half of the world’s production of enriched uranium. In addition, Russia and China account for about 70% of the global uranium production. Therefore, the BRICS bloc is well-equipped in the energy sector and is a superpower, he said.
“Energy is probably the key asset for industrialization. If you don’t have energy, you’re out of the game. The BRICS countries, with their combined energy capabilities, have become a superpower in energy,” said Fernandes.
The expert stressed that BRICS countries surpass all G7 nations in renewable energy. “Brazil, China, and India combined produce more renewable energy than all the G7 countries,” he said.
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If Saudi Arabia joins BRICS, the alliance will further strengthen its grip on the global oil and gas sector. Saudi Arabia has yet to accept the invitation and become a part of the grouping. The Kingdom is evaluating the pros and cons before accepting or rejecting the invitation.