Trade between BRICS countries experienced a rapid rise in 2023 after signing new deals and renewing existing partnerships and agreements. The trade deals initiated by BRICS are now putting the alliance on the global map for the sheer scale of the cross-border transactions.
According to new data from the World Bank, trade between BRICS nations is headed to reach $500 billion in 2024. While the value falls much below the average global trade, BRICS’ numbers are slowly yet steadily rising. The alliance is creating a foundation that could later turn into full-fledged trade agreements strengthening their native economies.
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The important weapon that BRICS is currently hiding under their sleeves is the de-dollarization initiative. The bloc first plans to cement trade agreements and help it grow in the coming few years. Once the stage is set, BRICS could put their de-dollarization initiative to work and begin to settle trade in local currencies.
The overall idea of BRICS is to eventually cut ties with the US dollar and make local currencies thrive. The larger the trade numbers rise between BRICS, the bigger the threat grows to the US dollar. BRICS members China and Russia are aggressive in their de-dollarization efforts and are taking every step to make it a reality.
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Read here to know how many sectors in the US will be affected if BRICS completely stops using the dollar. The move could send the US dollar into a tailspin and invite chances of a recession in the American markets.
BRICS: Oil Trade Could Be The Next Big Deal
BRICS inducted five oil-producing countries in August this year during the 15th summit in Johannesburg. The oil-exporting nations to join BRICS in 2024 are Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia. If BRICS makes other developing to pay local currencies to settle oil payments, the US dollar will be the hardest hit.
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While the day has not come yet. it wouldn’t take too many years for the scenario to play out. Remember, that BRICS previously announced that removing the US dollar from the global currency status is their “long-term goal”.