BRICS Expansion Will Change the Global Economy: Expert

Vinod Dsouza
brics currency expansion new development bank ndb

De-dollarization is the main agenda and topic of discussion in the upcoming BRICS 2024 summit in October this year. The 16th summit will be held in the Kazan region of Russia where new members the United Arab Emirates, Egypt, Iran, and Ethiopia will also be a part of the grouping. The summit will also plan on expansion making BRICS to become bigger and financially stronger.

Also Read: BRICS: Another Country Officially Ditches the US Dollar

BRICS will discuss new ideas to put local currencies first for cross-border transactions and not the US dollar. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.

More than 40 developing countries have formally expressed their interest in joining the alliance. Therefore, the 10-member bloc will decide on BRICS expansion in the October summit in Russia. The expansion is based on consensus and all members will jointly decide on who is let in and which country needs rejection.

Also Read: De-Dollarization Main Agenda of BRICS 2024 Summit

BRICS Expansion Will Be Problematic to the US Dollar: Expert

brics leaders
Source: Reuters

On the heels of the BRICS summit, Thailand’s political scientist Jiraporn Ruampongpattana explained that 2024’s expansion could be problematic to the US, the West, and the dollar. The expert stressed that the BRICS expansion will lead to several changes in how they operate and settle trade payments. The US dollar will be the first casualty in cross-border payments leading to more countries ending reliance on the currency.

Also Read: What De-Dollarization? US Dollar Bulldozes BRICS Currencies

“The expansion of BRICS will lead to changes in geopolitics and economy, as the further division of the world into two poles will continue,” said Jiraporn.

She stressed that the BRICS influence will lead to problems that will directly affect the US dollar and Western allies. “The influence of this group could make it problematic for some countries, closely aligned with the West, to build further relations with it,” she said.

Also Read: BRICS: India Accused of Dumping US Dollars To Keep Rupee From Falling

Therefore, the battle for financial supremacy could begin after the BRICS 2024 summit in October this year. While developing countries remain on one side of the geopolitical spectrum, the US and other Western allies will be on the opposite side.