This past August, the BRICS nations formally invited six new nations to join the alliance at the BRICS summit. The six countries that BRICS invited are Saudi Arabia, the United Arab Emirates (UAE), Egypt, Argentina, Iran, and Ethiopia. With 11 nations expected to feature in BRICS, some are wary that the new expansion will bring further threats to the US from an economic standpoint.
However, it’s hard to see any serious threat from BRICS, considering that there is still plenty of unrest and turmoil within the Bloc. Expansion was bound to create tension, and with worries of issues already within the original alliance, imagine adding 6 more nations to the mix. Brazil and India were initially torn over the expansion of BRICS, however, China was successfully able to sway them to oblige. In addition, questions still swirl around Russia and President Putin, with the ongoing war in Ukraine.
In addition, the BRICS currency conversation has brought up questions of threats to the US Dollar. Again, the US dollar has been the focal point of the global economy and trade for decades. Despite increasing regulations and inflation, USD still reigns supreme. It will take a significant period of decline for a new currency to top it. BRICS does over a third of global GDP after the expansion though, so it can soon dictate currency used in trade of crude oils and natural gas.
However, that will again take a significant amount of time to come to fruition. In that time, tensions can continue to grow, and lead to more divide within BRICS. The expansion of the BRICS bloc may bring minimal threat to the US economically. But that won’t come for a long time.