BRICS countries are taking on the U.S. dollar with plans to create a new currency to settle global trade. The idea has piqued the interest of several developing nations who want to be a part of the alliance. 19 countries have shown interest in joining BRICS and sent membership requests ahead of the summit, reported Bloomberg. Saudi Arabia and Iran are among the 19 nations that want to be a part of the BRICS block. However, BRICS nations compromising Brazil, Russia, India, China, and South Africa are yet to decide on Saudi Arabia and Iran’s entry into the coalition.
“We are getting applications to join every day,” said Anil Sooklal, South Africa’s BRICS ambassador. He added, “Thirteen countries have formally asked to join and another six have asked informally”.
Also Read: Will Canada & Mexico Join BRICS To Eliminate U.S. Dollar’s Dominance?
What Happens If Saudi Arabia & Iran Join BRICS?
Oil-rich Saudi Arabia joining BRICS could add burden on an already depleting U.S. dollar. Saudi could launder oil into European countries making them settle international trade with the new BRICS currency.
Reuters previously reported that Saudi is already buying oil from Russia and laundering it into the European markets. Read here to know how Saudi is laundering oil into European markets from Russia for a better understanding.
Also Read: Will the U.S. dollar Collapse Now That BRICS Are Developing Their Own Currency?
While the development is minimal, it could go full-fledged if they enter the alliance. European countries’ economy is dipping and there could be chances of them paying through the new BRICS currency that the dollar. France recently settled an LNG gas trade with China by paying with the Chinese Yuan.
On the other hand, Iran is pressed with sanctions regularly for allegedly financing terrorism around the world. If Iran manages to join the alliance, it could trade freely with other nations using the new currency. This would make America’s hold on the rouge nation minimal and give them a free hand in supporting terror activities.