The BRICS Summit 2023 five countries group (Brazil, Russia, India, China, and South Africa) has grabbed headlines for its expansion and BRICS currency discussions. The group, comprising major emerging economies, is holding its fifteenth summit in Johannesburg, The BRICS economic bloc ended a historic three-day summit in South Africa Thursday after making multiple headlines. where leaders from member countries convene to collaborate on common interests. BRICS expansion invited six new countries to join the BRICS countries.
Is BRICS creating a new currency?
The BRICS nations have a goal to establish fresh economic and trade systems that are distinct from the Western systems led by the United States, as stated by the group.
BRICS summit, the group is discussing de-dollarization, “aiming to reduce the reliance on the U.S. dollar and promote the use of national currencies in international trade.”
Why is BRICS creating a new currency? The value of the U.S. dollar has an impact on other currencies. When the U.S. economy does well, the dollar becomes stronger, which in turn makes other currencies weaker. For instance, just last year, $1 in U.S. dollars could buy you about 110 Japanese yen. But now, that same $1 is only worth 143 yen.
BRICS Currency Challenges:
Currency discussions explored various options, including a return to the gold standard or cryptocurrencies. Experts expressed skepticism about both, raising questions about their viability for international trade. The idea of a separate BRICS currency faces hurdles due to the complexities of establishing institutions and standards.
BRICS Invites Six New Members: BRICS expansion
A significant highlight is the invitation extended to six countries – Argentina, Egypt, Iran, Ethiopia, Saudi Arabia, and the United Arab Emirates – to join the BRICS economic bloc (Brazil, Russia, India, China, and South Africa). This BRICS expansion will more than double the group’s size, elevating its economic and geopolitical influence. With major oil-producing nations entering the fold, the bloc’s economic clout is set to grow further, leading to discussions about China’s increasing political reach in the Persian Gulf.
China’s Missing Voice and Putin’s Virtual Presence:
China’s President Xi Jinping‘s absence from a vital speech was surprising, replaced by his commerce minister’s strong and unfriendly remarks towards the United States. This unexpected move left even Chinese state media and the foreign ministry caught off guard. On a similar note, Russian President Vladimir Putin’s virtual presence due to an arrest warrant shows the complexity of global dynamics and tensions between Russia and the West.
India-China Border Tensions:
The BRICS summit 2023 also saw Indian Prime Minister Narendra Modi and China’s leader engage in talks to ease tensions at their disputed border. The border issue has led to a standoff between Indian and Chinese soldiers in the Ladakh area for 3 years. The leaders discussed ways to bring their troops back and reduce tensions. Despite past conflicts, both leaders highlighted the importance of good relations for peace and development.
In conclusion, the BRICS summit reflects a changing geopolitical landscape. As member countries discuss BRICS expansion, currency options, and regional tensions, the global community watches closely to discern the potential impact on international relations and economies.
