The BRICS alliance is advancing to dethrone the U.S. dollar and replace it with a new currency as a global reserve. The U.S. sanctions against developing nations have led to the bloc deciding the formation of a new currency. Russia and China are convincing other countries to ditch the U.S. dollar and accept the soon-to-be-released BRICS currency. A total of 19 countries have expressed their interest to join BRICS and accept the new tender. Saudi Arabia is one of the interested countries and has formally sent its application to join BRICS.
BRICS: Saudi Arabia Most Likely To Join the Alliance
Out of the 19 countries that have expressed interest to join the bloc, only 13 have formally sent their applications. The other six nations have informally requested to be a part of the group. Read here to know the full list of 19 countries that want to join the group.
A senior official informed anonymously to Business Standard that BRICS leaders are looking to induct five countries in the next summit. The government official revealed that BRICS is considering inducting Saudi Arabia into the alliance next month.
Also, BRICS needs Saudi Arabia to fund its New Development Bank (NDB) and receive a cash flow to initiate cross-border transactions. Therefore, the oil-rich nation Saudi Arabia is the first preferred choice to be allowed entry into the group.
Saudi Arabia is the largest exporter of oil to the U.S. and Europe exporting billions of barrels every year. If Saudi decides to make Europe settle oil payments in the new BRICS currency, the U.S. economy could be hit. Read here to know how many sectors in the U.S. could be affected if Saudi forces Europe to pay with BRICS currency.
BRICS is an acronym for Brazil, Russia, India, China, and South Africa. The next summit will be held in South Africa in August and the formation of a currency will be decided.