As the global economy continues to evolve, the BRICS alliance—comprising Brazil, Russia, India, China, and South Africa—is gaining momentum as a potential alternative to the US-dominated financial system. The upcoming VI International Municipal Forum (IMF) of BRICS, set to take place in Moscow on August 27-28, 2024, marks a pivotal moment for the bloc, with around 126 nations expressing interest in joining. The event highlights a growing trend among developing countries to move away from the US dollar and strengthen their local currencies for trade.
Growing Interest In BRICS
The forum will serve as a platform for countries, primarily from Asia, Africa, South America, and Eastern Europe, to explore membership in the BRICS alliance. This year’s conference will feature over 70 business events and large-scale exhibitions, including the annual international exhibitions “DIGITECH+” and “Mechanical engineering: strategies and technologies.” The focus will be on showcasing the economic potential of the BRICS countries and the benefits of joining the bloc.
To date, 26 nations have formally applied to join BRICS, while another 21 have informally expressed interest. This growing queue underscores the appeal of the bloc’s mission to create a more equitable global landscape, free from the dominance of the US dollar.
The Push for De-Dollarization
A key motivation for countries considering BRICS membership is the desire to reduce dependency on the US dollar. The de-dollarization trend is gaining traction as nations seek to protect their economies from the volatility and influence of the US currency. BRICS offers an attractive alternative, with discussions of a new BRICS currency likely to take center stage at both the upcoming forum and the 16th BRICS summit in October 2024.
Paul Frimpong, Founder of the Africa-China Centre for Policy Advisory, emphasized the importance of this shift, stating, “More than 40 countries have expressed interest in joining BRICS. The alliance attracts a diverse group of potential members because of its primary-driven shared desire to create a more equitable global landscape that many countries believe is currently biased against them.”
Also Read: Dollar Crisis Looms – BRICS Challenge Could Trigger a 20% Drop
Looking Ahead to the BRICS Summit
The October summit in Kazan, Russia, will be the first gathering of the newly expanded BRICS alliance. With the potential addition of new members, the discussions are expected to focus on the future of the bloc, including the possibility of a BRICS currency and the role of the US dollar in global trade. This gathering could mark a turning point in the global financial system, as more countries join forces to promote local currencies and reduce reliance on the US dollar.
The growing interest in BRICS membership signals a shift in the global economic order. As developing countries rally behind the bloc, the BRICS alliance is poised to play a more significant role in shaping the future of international trade and finance.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses./
About The Author
