2023-08-25 00:48:01
The BRICS group announced at the South Africa Summit on the 24th that six countries including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates have been officially invited to join the BRICS countries. effective date.
(Previous summary: De-dollarization “India’s first use of rupees to trade crude oil! The father of the BRICS criticized: “Common currency” is a dream)
(Background supplement: The de-dollarization war is coming, can stablecoins help the US government stabilize its hegemony?)
Comprehensive foreign mediareportThe BRICS Group officially announced at the South Africa Summit yesterday (24th) that six countries including Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates (UAE) have been officially invited Join the BRICS countries, eligibility will take effect on January 1, 2024.
Chinese President Xi Jinping said that this is a historic moment, which reflects the determination of the BRICS Group to unite and cooperate with developing countries. The expansion will inject new vitality and further strengthen the power of world peace and development. At the same time, he also announced that China will launch 100 A special fund of 100 million U.S. dollars will be used to implement Beijing’s global development initiatives.
Indian Prime Minister Narendra Modi said:
India has always believed that the new membership will further strengthen the BRICS and provide incentives for our joint efforts, which will also strengthen the faith of many countries in the multipolar world order.
Arab accession is an important role
According to previous US media forecasts, if both Saudi Arabia and Indonesia join the BRICS countries, by 2040, the BRICS countries are expected to account for 44% of the global economy, surpassing the 21% of the global GDP of the Group of Seven Industrial Countries (G7). %.
Andy Schectman, President of Miles Franklin, an American precious metals exchange, alsoexpressIf the BRICS Group decides to integrate the countries that have formally applied to join the BRICS Group, then the US dollar may be abandoned in cross-border transactions. Saudi Arabia is an important player, which can promote other countries to use their own currencies to purchase oil.
BRICS fail to reach consensus, interests diverge
However, many mediapredictHowever, since the BRICS members have not reached a consensus among themselves and their interests are different, it remains to be seen whether they can achieve a unified force with great influence.
For example, Russian President Vladimir Putin hoped to win the support of the BRICS and other countries for his war of aggression once morest Ukraine, but he failed. Chinese President Xi Jinping hopes to gain support in the escalating conflict between China and the United States, but whether it is South Africa, Brazil or India, they do not want to see the conflict become bigger, but hope to contain the conflict.
Will the wave of de-dollarization advance further?
According to a previous report by DongZone, in recent years, due to the U.S.-China struggle for hegemony, Russia’s sanctions once morest Ukraine, and doubts regarding the impact of the U.S. interest rate hike cycle on assets, countries have blown a wave of de-dollarization, and the BRICS Group is one of them. one.
Currently the BRICS group is trying to createA common currency strong enough to rival the US dollarThe Indian government said earlier this week that India and the United Arab Emirates have begun to settle bilateral trade in their own currencies. Recently, India’s largest refiner paid in rupees for 1 million barrels of oil from the Middle East country.
Separately, a UAE gold exporter also sold 25 kilograms of gold to Indian buyers for regarding 128.4 million rupees ($1.54 million).
De-dollarization still faces challenges
But while de-dollarization may help level the playing field for economies outside the United States, Berkeley economics and political science professor Barry Eichengreen thinkall functions of the dollar “reinforce each other”, and there is currently no mechanism for banks, companies and governments to change their behavior at the same time.
At the same time, the reserve currency that replaces the U.S. dollar needs to have stability, circulation, and acceptability. At present, the legal currencies of other countries do not seem to meet these requirements.
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