The rising interest from countries seeking to join the BRICS alliance is due to a lot of different factors. Whether it be the hope for a multipolar world or its representation of a quarter of the world’s GDP. However, it is undeniable that a BRICS currency has been a driving factor for a membership interest.
With the BRICS summit just a few months away, the idea of expansion will undoubtedly be a discussed topic. Additionally, the gathering nations will be set to converse on the development of their own common currency. Two facets that will go hand in hand as the bloc continues to grow.
BRICS Currency Driving interest?
For much of this year, the rising prominence of the BRICS bloc has been an interesting story. Amid the alliance’s de-dollarization efforts, it has received a ton of interest from several countries. All are seeking to work alongside the bloc to establish a new global order. One distinct and non-reliant on the decades of dominant posturing in the West.
Now, it is certainly undeniable that an impending BRICS currency is a driving factor for a membership interest. Indeed, countries have perceived this alternative currency as a way to enhance their reliance on the US dollar. Alternatively, the trade currency and the New Development Bank provide a way to gain economic assistance not available with current financial institutions like the IMF or World Bank.
The Director of the Egyptian International Shipping Group, Ashraf Naguib, recently discussed the attractiveness of this common currency. Additionally, they discussed why the promise of the New Development Bank and these economic factors have made it such a popular destination for countries.
“It’s absolutely one of the main assets that we can take advantage of by joining BRICS and by joining the New Development Bank. We need to facilitate our trade, weathering important export challenges, and one of the things that hinder this supply chain in this process is the availability of foreign currency,” they stated.
For countries that are seeking entry into BRICS, this currency is a kind of liberation. No longer would they be reliant on the greenback, and more immediately would their interests be accounted for. Countries like Argentina would find financial relief through the BRICS system. Subsequently, it has made the alliance a necessity for these countries seeking economic, trade, and financial stability that doesn’t exist in the current global order.