Amid the BRICS’ ongoing de-dollarization efforts, yet another country has announced its intention to ditch the US dollar in its oil trade. The economic alliance has embraced local currencies throughout the last year. Now, a nation looking to join the alliance in 2024 is poised to join its move away from the greenback.
All eyes are on the upcoming BRICS 2024 Summit. Set to take place in October, it is poised to have massive implications for the global power balance. With last year’s event seeing several countries join the grouping, this year’s iteration should see a similar groundbreaking development.
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New Nation Seeking BRICS Membership to Abandon the US Dollar
The last two years have seen a growing divide form between the West and the Global South. That has mostly centered around the US dollar. Specifically, the latter is seeking to lessen international reliance on the currency. It has spent the last several months seeking that goal, and it is set to take another step forward soon.
Specifically, the BRICS bloc has seen another new country announce its intention to ditch the US dollar in oil trade. Indeed, Venezuela has stated that exiting such trade with the US is a key part of its bid to join the collective. The country’s president, Nicolas Maduro, recently expressed as much.
“And if those people from the North [US} and their followers in the world make the mistake of their lives, these oil and gas blocs, which have already been signed, will go to our allies in BRICS,” Maduro said. Subsequently, affirming it will align its oil trade with the collective.
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The statement comes as Venezuela is seeking entry into the alliance. It isn’t the only nation, as it joins a growing list. Earlier this year, several Asian countries have emerged, expressing interest. Therefore, the South American nation joins the likes of Malaysia, Thailand, Nigeria, and others.
There has been some debate within BRICS regarding continued expansion. In 2023, the group welcomed Iran, Egypt, Ethiopia, and the United Arab Emirates (UAE). The growth effort was its first since 2001. Although more expansion has been discussed, the bloc has been weary of enacting such a measure.
However, Venezuela shows why they may still expand in 2024. The oil trade has emerged as a strength for BRICS. With another country joining the fray, it could further their de-dollarization goals.