Senegal to Join and Adopt the BRICS Currency?

Joshua Ramos
Source: Remitly Blog

The potential expansion of the BRICS bloc has been at the forefront of global discourse. Moreover, as the annual summit is set to arrive in just a matter of months, those discussions will take on more importance. Alternatively, could the country of Senegal join and adopt the BRICS currency?

A nation that may not be as large as the potential BRICS nations, it still maintains formidable strengths that could make it a benefit to the bloc. Additionally, its value in the international trade sector could make it a candidate for the collective’s potential expansion.

Senegal to Join BRICS?

BRICS nations leaders

In recent months, more than 20 countries have reportedly submitted membership requests to the BRICS bloc. Subsequently, the popularity of the growing collective is undeniable, with nations potentially adding to what is possible from the economic alliances.

Now that a host of countries are being considered, one remains a prime candidate for inclusion. So, could Senegal join and adopt the BRICS currency? Currently, it appears to be interested, as its foreign minister was present at a BRICS expansion dialogue that took place in May 2022.

Senegal may not be the behemoth that other potential BRICS nations are, but it still presents its benefits. Specifically, the country is a gold mining and energy contributor with a robust reserve of gold, oil, and gas. These factors are likely to play a big part in the development of the nation’s economy, as it continues to refine its exports across the globe.

The nation boasted a growth rate of 1.6% in 2022 and a population of 17 million. Still, it would be bringing its trade assets to the BRICS bloc, which already has 42% of the world’s population. Alternatively, its value as a trade player could be of interest to the developing BRICS currency.

Its Benefit to Alternative Currency

BRICS Nations Leading International Interest in Bitcoin
Source: Unsplash

Currently, the country is a member of the African Continental Free Trade Agreement (afCFTA). Conversely, one of the largest countries in that collective, Egypt, has also sought a place in the economic bloc.

This agreement allows a reduction in tariffs to zero on 98% of intra-African trade. Moreover, the nation’s top trade partners already include India and China, two of the largest in the BRICS bloc.

The development of a BRICS currency for trade purposes would greatly benefit from the inclusion of Senegal. Because of its export potential, its adoption of the currency could only increase the current trajectory of the alternative. Further decreasing international reliance on the US dollar and its reserve currency status.