Bridging the Gap: BRICS Economic Bloc Promotes De-dollarization and Expands Global Influence

2023-08-20 10:35:30

As more and more countries join the BRICS economic bloc, the number of settlements using national currencies will increase significantly. All this leads to a weakening of the dollar’s dominance, a Chinese expert believes. “For most developing countries, development is the most important priority. That is why the BRICS cooperation mechanism is attractive to these countries,” he added. BRICS and dollarization Sun Qi, executive director of the Center for Russian and Central Asian Studies of the Shanghai Academy of Social Sciences, told the Russian news agency Tass on Friday that the countries joining the BRICS economic bloc will significantly increase the use of national currencies in settlements. This will contribute to the acceleration of de-dollarization. The BRICS countries are Brazil, Russia, India, China and South Africa. As more countries join the ranks of BRICS+ partners, the shift to settlement in local or third-party currencies in mutual trade will increase significantly, accelerating de-dollarization. Speaking regarding the upcoming BRICS summit, which will take place in Johannesburg on August 22-24, Qi believes that one of the topics to be discussed will be the creation of a BRICS single currency: “The BRICS money used for transactions between BRICS countries can be discussed in full and detail. “. Although some believe that the issue of a common BRICS currency will indeed be discussed at the summit, including Russian Deputy Prime Minister Alexei Overchuk, South Africa’s top diplomat for BRICS relations, recently said that the issue is not on the agenda for discussion at the summit . Incidentally, South Africa will host the BRICS summit this year. Another topic that will be intensively discussed at the upcoming summit is the expansion of the economic bloc. Qi emphasized that in recent years the expansion of the BRICS was hindered by “the coronavirus epidemic, the Russian-Ukrainian conflict and other factors”: For most developing countries, development is the most important priority. That is why the BRICS cooperation mechanism is attractive to these countries. According to South African officials, more than 40 countries have expressed interest in joining the economic bloc, including 23 countries that have already submitted their applications.
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