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 Nigeria.
Will Nigeria Join And Adapt BRICS Currency
Nigeria already has a steady trade relationship with one of the founding BRICS nations, China. A deal between the two nations went towards providing adequate local currency liquidity to Nigerian and Chinese industrialists and other businesses. Hence, reducing difficulties encountered in the search for the United States Dollar.
However, the International Monetary Fund and the World Bank have worked towards diminishing that deal, wanting Nigeria to continue its use of the US Dollar. Joining BRICS may be the solution to this interference for the African nation, in allowing the US dollar to dominate the economy less, in favor of a more regional currency. BRICS, if the currency is established, could limit the hold that the US Dollar has on Nigeria, allowing it to continue growing its relationship with China, as well as with other African nations who are hoping to join the Alliance.
Nigeria joining BRICS isn’t a sure thing just yet, however, the reasons that the nation should attempt to join are growing. At the August BRICS Summit in South Africa, new nations joining the alliance will be a trending topic, and Nigeria may be a country that already has a foot inside the door thanks to China. Therefore, it is possible that soon, with BRICS country expansion, Nigeria may be one of the first new countries to join.