Anticipated Announcement of New BRICS Alliance Members at 2024 Summit
The upcoming 16th summit of the BRICS alliance, scheduled for October this year in the Kazan region of Russia, is expected to unveil new countries joining the bloc. These emerging nations have expressed a strong desire to become part of the alliance and invitations are being extended to them.
Ongoing discussions between Russia and the bloc regarding the expansion have been confirmed by a Russian official. Sergey Ryabkov, Russia’s Deputy Minister of Foreign Affairs, discussed the increasing opportunities for new countries to join the bloc in an interview with TV BRICS. He emphasized that the upcoming summit in Kazan will mark a significant milestone in the collaboration among the BRICS countries.
Although the bloc initially lacked experience in expanding at the beginning of 2024, it is now believed to possess sufficient knowledge to sustain its expansion efforts.
Ryabkov highlighted the enthusiasm shown by the newcomers, stating, “It is worth mentioning that all the newcomers show great enthusiasm […] They are ready to work substantively and professionally on the agenda that the Russian Chairmanship has developed in consultation with all participants.”
These newcomers will be guided by specific requirements on how to engage with the alliance. As of April 2024, approximately 35 countries have expressed their interest in joining BRICS. Some have officially submitted their applications, while others have expressed their interest more informally.
Furthermore, as BRICS expands in 2024, the US dollar is expected to face increasing pressure. Several nations are anticipated to reduce their reliance on the US dollar, and the de-dollarization efforts by the BRICS nations are exacerbating the challenges faced by the US dollar. Ryabkov emphasized the significance of the summit, stating, “The summit is a new point of reference and an opportunity to build on the leaders’ decisions and agreements in the future. I think it will certainly emphasize not just the growing importance of BRICS, but also the policy-shaping function of the Russian chairmanship.”
BRICS Strives for Non-USD Transactions
In its efforts to strengthen domestic economies and businesses, BRICS is making progress towards eliminating the US dollar from global trade and transactions by 2024. The bloc aims to prioritize the use of local currencies over the US dollar.
Furthermore, BRICS is encouraging other developing countries to settle cross-border transactions in local currencies. China and Russia recently signed a trade agreement involving the use of their respective currencies, the Chinese Yuan and the Russian Ruble, for transactions amounting to an astonishing $260 billion. This trade deal aims to facilitate payment exchanges for commodities purchased by both nations.
95% of the $260 billion worth of trade between China and Russia will be settled in Chinese Yuan, while the remaining 5% will be paid in Russian Ruble and Euro. This development highlights the BRICS alliance’s strong commitment to advancing the de-dollarization agenda.
An analyst commented, “$260 billion worth of trade between China and Russia this year. But almost no US dollar will be used! It will be 95% Chinese yuan and Russian rubles. Maybe some euros are involved. This de-dollarization will soon be replicated among all BRICS+ members.”