2023-05-02 11:08:31
The BRICS countries are seeking to replace the US dollar with a new currency on the global stage to conduct international trade. A recent report highlighted that 19 different nations have officially applied to join the BRICS alliance. The goal of developing countries is to dislodge the dollar from its global reserve status and create a new financial order. About 5 Arab countries have expressed their interest and are ready to join the BRICS bloc.
The five Arab countries that have officially applied to join the BRICS alliance are Saudi Arabia, the United Arab Emirates, Bahrain, Egypt and Algeria. Furthermore, Iran has also shown interest in joining the BRICS.
Arab countries are rich in oil and gold reserves, which might give BRICS a boost if they join the bloc. This might strengthen the alliance of nations and challenge the G7 countries. The G7 countries are developed nations consisting of the United States, Canada, Germany, France, Italy, the United Kingdom, and Japan.
A Bloomberg report According to In contrast, BRICS will account for 35 percent of the world economy.
Arab nations and the pursuit of the BRICS alliance
BRICS expansion might tilt the global financial order toward developing countries in the East rather than nations in the West. Reliance on the US dollar might stop, which might undermine its status in the global order. A falling dollar might spell financial disaster if it doesn’t find a new way to finance the deficit.
Saudi Arabia’s entry into the alliance might be the first step towards the loss of the dollar’s strength. The oil-rich country might sell crude oil to Europe, which would force the old continent to settle trade with the new BRICS currency (even its digital currency). Saudi Arabia is the world’s largest oil exporter, and several Western countries depend on its exports.
In conclusion, the entry of Saudi Arabia into the BRICS might be fatal for the US dollar and the growth of the G7 countries. Financial order is slipping out of the hands of the United States and into the hands of the developing countries of the East.
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