BRICS Will Discuss Use of Local Currencies at August Summit
by Vinod Dsouza, August 3, 2023, watcher.guru
The BRICS alliance will discuss the usage of local currencies for cross-border transactions in the upcoming summit in August. The bloc of five nations will examine ways to strengthen their local economies by putting their native currencies to use. BRICS aims to eliminate the U.S. dollar for global trade, and start remittance for imports and exports using local tenders.
The South African BRICS Ambassador Anil Sooklal confirmed exclusively to Watcher Guru that the alliance will discuss matters related to native currencies. The development indicated that BRICS is serious about sidelining the U.S. dollar, and aims to keep local currencies in the driver’s seat of the global financial order.
“Discussion focuses on deepening use of local currencies,” confirmed Sooklal exclusively to Watcher Guru. Therefore, the bloc of five nations will put forth their respective currencies to settle global trade, and not the U.S. dollar.
BRICS will combinedly decide the number of sectors in which local currencies will be put to use for international transactions. The move will strengthen local economies giving their respective native currencies a boost in the foreign exchange markets.
Settling trade within the bloc by ditching the U.S. dollar will make businesses boom in the BRICS countries. The usage of local currencies within the BRICS nations will be faster, smoother, and more cost-effective than the U.S. dollar has been.
BRICS Will Strengthen Local Currencies, Ditch U.S. Dollar
The BRICS alliance will provide other developing countries with a financial cushion to lift their economies in the coming years. The U.S. pressing sanctions against developing countries is what made them join hands and end reliance on the greenback. The global financial powers could soon tilt to the East, leaving the U.S. and other Western countries to lose economic ground.
Saudi Arabia Expects BRICS Bank Entry at August Summit
by Joshua Ramos, August 4, 2023
In just a few weeks, the BRICS bloc is set to meet at an undeniably vital summit. There, the bloc will discuss everything from alternative currency options to national currency promotion, and potential expansion. Subsequently, the gathering will provide an opportunity for the bloc to set its trajectory for the coming years.
Now, reports have indicated that Saudi Arabia is likely to join the BRICS New Development Bank at the August summit. Indeed, the country has sought entry into the development bank for some time. Moreover, the move could proceed with its eventual inclusion into the economic alliance, as it has sought entry into the collective.
“In the Middle East, we attach great importance to the Kingdom of Saudi Arabia, and are currently engaged in a qualified dialogue with them,” the bank said in a recent statement. Moreover, its involvement in the bank would infuse the bloc with renewed funds. An aspect of the institution that has been concerning since Russian sanctions were imposed.
Established in 2015, the bank currently consists of Brazil, Russia, India, China, South Africa, the United Arab Emirates, Uruguay, Bangladesh, and Egypt. Additionally, the report states that the bank has approved more than 90 projects since its arrival in 2015. Moreover, it has totaled $32 billion in loans as of October 2022. Saudi Arabia will undoubtedly present a positive addition and could denote its value prior to joining the official bloc.
13 Countries Officially Apply To Join BRICS Alliance
by Vinod Dsouza, August 3, 2023
A total of 13 countries have officially submitted their applications to join the BRICS alliance. Inducting more countries into the bloc could be a paradigm shift in the geopolitical landscape affecting the global economy. The developing nations aim to end reliance on the U.S. dollar and trade in native currencies to strengthen their local economies. A dozen and more countries expressing interest to join the BRICS alliance indicates that the U.S. dollar is in jeopardy.
The decision to induct the 13 countries will be jointly taken by the BRICS bloc in the upcoming summit. The next BRICS summit is scheduled on Aug. 22 to 24 in Johannesburg, South Africa. BRICS is an acronym for Brazil, Russia, India, China, and South Africa.
The 13 countries that have officially applied to join the BRICS alliance are the United Arab Emirates (UAE), Saudi Arabia, Bangladesh, Venezuela, Argentina, Indonesia, Ethiopia, Bahrain, Mexico, Nigeria, Algeria, Egypt, and Iran.
Another 22 countries have expressed interest to join the bloc but have not formally applied yet. The other countries hail from Asia, Africa, South America, and Eastern Europe. The ASEAN bloc, SCO countries, and the GCC nations are also considering reducing dependency on the U.S. dollar.