BRICS is an acronym for five of the leading economies in the world: Brazil, Russia, India, China, and South Africa. Together, the nations are looking to establish their own currency, BRICS, in order to decrease the influence of the US in the global trade market by means of de-dollarization. New countries are already showing interest in joining the organization, including Mexico.
Will Mexico Join And Adapt BRICS Currency
Mexico of course borders the United States, home of the US dollar. However, the country has shared an interest in BRICS over the years. Additionally, after recent tensions between the US and Mexico, the country has once again shared its interest in joining the alliance, which can potentially lead to adapting the upcoming BRICS currency.
While joining BRICS could be positive for Mexico economically and globally, it may cause concerns for the United States. Having economic and power rivals such as Russia and China with close economic and political ties with Mexico could impact how the US has to deal with Mexico in the future. In addition, the alliance between Mexico and BRICS could provide these rivals with easier access to the US market.
Mexico and China have a strong, profitable market relationship. On the other hand, Mexico has always maintained a neutral relationship with China, staying out of political stance and certain policies. Russia and Mexico also have a positive relationship, but they have had positive diplomatic relations as well over the past century.
With Mexico expanding its relationships with other BRICS nations outside of the previously mentioned two, it is possible that Mexico can join BRICS, which can ultimately lead to adopting a potential new currency for trade. However, this can be determined at the upcoming BRICS Summit in August, what new countries may be brought into BRICS.