19 countries are reportedly seeking to join the BRICS alliance, which consists of Russia, Brazil, India, China and South Africa. These countries have expressed a desire to move away from the use of the US dollar in international trade and have opted for a new alternative currency. Currently, all international trade requires the use of the US dollar, even if it’s between non-US countries. This requires conversion of currency and following the fluctuating exchange rate.
According to Watcher News, 19 countries have now submitted requests to become members of BRICS ahead of the annual summit of the alliance. The event is set to take place this summer in South Africa and is expected to have many new members by the time it takes place. Given that the total GDP of BRICS members surpasses that of G7 members, it’s possible that BRICS will continue to expand and shift the balance of global power.
Seeing the efforts of countries looking to de-dollarize, US Treasury Secretary Janet Yellen sees a long-term threat to the dollar’s hegemony or dominance. However, there are concerns among BRICS members about the impact of their influence as China’s GDP is already two times greater than the total of the other four BRICS members. Nevertheless, the addition of 19 countries seeking to become members could make BRICS growth inevitable. The US dollar, which has long enjoyed its use in international markets, may be shaken or even fall if BRICS and other countries increasingly pursue de-dollarization. Additionally, some analysts believe that the need for the US dollar is also responsible for crises in other countries when the US experiences an economic downturn.
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