Johannesburg, 2 January 2024 (TDI): For a global shift, BRICS welcomes Ethiopia, Egypt, Iran, Saudi Arabia, and the United Arab Emirates as new members on January 1, 2024.
With more nations joining, BRICS an essential forum for collaboration between emerging markets and developing countries, will contribute more to global governance, international peace, and development.
This extension reflects the BRICS group’s growing significance and influence, which has been the subject of multiple membership requests in recent years. Recognizing the five new members’ strategic positions within their respective areas and economic potential, the Johannesburg Summit in August 2023 formally welcomed them to join.
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Russia’s President Vladimir Putin has highlighted the BRICS’s commitment to “strengthening multilateralism for equitable global development and security.” Putin will assume the rotating chairmanship of the organization in 2024.
Russia intends to organize over 200 social, political, and economic gatherings in ten cities this year, culminating in a summit in Kazan in October.
Additionally, Putin has stated that the BRICS initiatives would benefit the global order. According to him, more nations are looking for alternatives to the US-led “rules-based system” and would instead follow their and their allies’ interests. He thinks that doing this will foster advantageous circumstances for cooperative development.
Similarly, Putin reaffirmed these objectives during his year-end news conference, where he promised to effectively carry out the Johannesburg Summit’s decisions including the one about BRICS membership expansion.
Moreover, the BRICS coalition aims to strangle the US dollar by settling cross-border transactions in local currencies. Members of the BRICS group—India, China, Russia, the United Arab Emirates, and Saudi Arabia have already begun to settle international commerce in local currencies.
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If the BRICS countries stop using the dollar for international trade, it might impact five US financial sectors. The banking, foreign exchange, tourism, and production sectors are among the financial industries that may experience a decline. The five industries listed below will suffer if BRICS members decide not to resolve their disputes in US dollars.
Meanwhile, it needs to be remembered that Argentina has withdrawn a planned entry from the BRICS group under the leadership of new president Javier Milei.
In a nutshell, these five new members have increased the group’s economic and political power. Together, they represent a population of over 2.5 billion people and a GDP of over $16 trillion.