The global interest in the BRICS alliance, comprised of Brazil, Russia, India, China, and South Africa, has reached new heights, reflecting its increasing influence and potential for creating substantial global change.
As the highly anticipated BRICS Summit approaches, nearly two dozen nations have expressed their strong desire to become part of this influential economic bloc.
Russian Deputy Foreign Minister Sergey Ryabkov confirmed on TASS, a Russian state-run news agency, the surge in membership requests, highlighting the growing prominence of the alliance and signaling a shifting economic landscape.
Who wants in?
Notably, regions currently unrepresented in BRICS, such as the Arab world and the Asia-Pacific area, are displaying a significant interest in joining the alliance.
The upcoming Summer Summit in August will extensively discuss these applications and shape the expansion strategy of BRICS. The considerations and opinions of existing members will play a vital role in determining the future membership and agenda of the alliance.
Ryabkov emphasized the ethos of BRICS, describing it as a platform where members drive a mutually agreed upon and constructive agenda, rather than operating on a leader-follower model.
BRICS currency model
Central to the expansion discussions is the concept of a common BRICS currency.
Economist Herbert Poenisch suggests that this currency would coexist with the established dollar-centric global monetary system, rather than replacing the US dollar.
China's role as a significant trading partner for all BRICS nations becomes pivotal in this potential currency change.
Poenisch proposes aligning bilateral exchange rates and pegging to the renminbi, the official term for Chinese currency, as initial steps.
However, challenges lie ahead in the creation of a common BRICS currency. Trade deficit countries, such as India and South Africa, would require a system to credit them.
Poenisch also emphasizes the need for institutions similar to the European Payments Union (EPU) and a managing agent like the Bank for International Settlements (BIS).
The BRICS Summit holds great potential to shape the future of global economics.
The possibility of expanded membership and the introduction of a common currency adds a captivating dimension to the narrative, with the world closely observing as the BRICS alliance navigates these promising, yet complex, waters.