The recent BRICS expansion in August saw the bloc moving from the traditional 5-member group to a new 11-nation alliance. BRICS inducted six new countries: Saudi Arabia, the UAE, Argentina, Egypt, Iran and Ethiopia, strengthening the bloc further. All 11 countries are looking to end dependency on the U.S. dollar and promote their local currencies instead. This puts pressure on the U.S. dollar as the currency might not find new means to fund its deficit.
Now that the first round of BRICS expansion is complete, South African President Cyril Ramaphosa made a huge announcement on the second round of expansion. Ramaphosa hinted that many more countries could join BRICS and challenge the U.S. dollar in global trade.
BRICS: South African President Makes Huge Announcement on Second Round of Expansion
Ramaphosa shed light that BRICS is reviewing formal applications sent by the other countries who want to join the bloc. A total of 23 countries had submitted their formal applications this year while 22 other nations informally requested to join. The South African President hinted that a second round of BRICS expansion might be on the cards soon.
“We have consensus on the first phase of this expansion process, and other phases will follow,” he told Bloomberg on the last day of the 15th summit in Johannesburg.
It is likely that the New Development Bank (NDB) is reviewing applications and will come to a conclusion on the second phase of the BRICS expansion. A second round of expansion could make the bloc stronger and challenge the traditional Western financial supremacy.
The six new countries will join the BRICS in 2024 and Argentina is the only nation that might decline the invitation. Read here to know why Argentina might not join BRICS and decline the invitation to be a part of the group.