BRICS Welcomes Potential Newcomers, Expecting Varied Views On De-Dollarization

The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, has extended membership invitations to six more countries, in a bid to challenge the dollar’s supremacy and offer an alternative to the dominant Western world order. However, this can further lead to differing opinions on de-dollarization, Business Insider reported. 

The new invitees include Iran, the United Arab Emirates (UAE), Egypt, Argentina, Saudi Arabia, and Ethiopia. Significantly, the inclusion of major energy exporters like Saudi Arabia, Iran and the UAE is expected to have a profound impact on global trade, given that energy commodities, largely denominated in U.S. dollars, are key components of the global economy.

See Also: Musk Weighs In On CEO Pay, Takes Aim At Mary Barra's Salary

However, the invited members have been sending various signals about their move away from the dollar. For instance, Iran has been working to de-dollarize for years and has been considering the yuan as an alternative for settling trade. Meanwhile, the UAE hasn’t made a public declaration about shifting from U.S. dollar trade, but its actions indicate a move in this direction.

Amid economic uncertainties and a shortage of dollars, countries like Egypt and Argentina are also contemplating the use of non-dollar currencies. Even Saudi Arabia, known for its strategic partnership with the US and pricing oil exclusively in the greenback, has expressed openness to trading in other currencies.

Ethiopia’s stance remains unclear, with no public statement about moving away from U.S. dollar-dominated trade. Nonetheless, its bid for membership appears to stem from a desire for an alternative world order.

Read Next: Fine art investing isn't a multi-millionaire exclusive anymore. You can partially own curated pieces worth tens of millions today. Click here to explore Benzinga's selection.

Photo by Dilok Klaisataporn on Shutterstock