The BRICS countries (Brazil, Russia, India, China, and South Africa) are a group of emerging economies that have been growing rapidly in recent years. If the BRICS grow to 50 countries, it could pose a danger to the US dollar as the world’s reserve currency.
The US dollar is currently the most widely used currency in the world for international trade and investment. However, if the BRICS grow to 50 countries and they start to use their own currencies more often, it could lead to a decline in the use of the US dollar.
This could have a number of negative consequences for the US economy. For example, it could make it more expensive for US companies to export goods and services, and it could make it more difficult for the US government to borrow money.
It is important to note that there are a number of factors that could affect the future of the US dollar. The growth of the BRICS is just one factor, and it is not clear how significant an impact it will have. However, it is something that the US government and businesses should be aware of.
Here are some of the potential dangers to the US dollar if BRICS grows to 50 countries:
- The US dollar could lose its status as the world’s reserve currency: If the BRICS countries start to use their own currencies more often, it could lead to a decline in the use of the US dollar. This would make it more expensive for US companies to export goods and services, and it would make it more difficult for the US government to borrow money.
- The US dollar could become more volatile: If the US dollar loses its status as the world’s reserve currency, it could become more volatile. This would make it more difficult for businesses to plan for the future, and it could lead to increased uncertainty in the global economy.
- The US economy could suffer: A decline in the value of the US dollar could have a negative impact on the US economy. This is because it would make imports more expensive, which would hurt consumers and businesses. It could also lead to inflation, which would further erode the purchasing power of US citizens.
Overall, the growth of the BRICS could pose a danger to the US dollar as the world’s reserve currency. However, it is important to note that there are a number of factors that could affect the future of the US dollar, and it is not clear how significant an impact the growth of the BRICS will have.
More than 40 countries have shown an interest in joining BRICS, Anil Sooklal, South Africa’s ambassador-at-large responsible for ties with the economic alliance and Asian countries, has said.
The diplomat told reporters in Johannesburg on Thursday that 22 countries have formally applied to join the group, while “an equal number” of states “have been informally asking about becoming BRICS members.”
Speaking with RT on Sunday, Sooklal described BRICS as an “inclusive” organization that has always been open to dialogue with the larger global community. The group currently comprises Brazil, Russia, India, China, and South Africa, and accounts for over 40% of the global population and nearly a quarter of the world’s GDP.
Sooklal said that BRICS does not distinguish between the Global North and Global South and is ready to talk to any country that “has the same vision for a more inclusive and equitable global order where we do not marginalize large parts of the world,” including many developing nations.
The diplomat went on to point out that while the United Nations has yet to embark on comprehensive reforms that would give emerging countries a greater voice, BRICS has charted its own path to remedy the situation.
However, he stressed that the bloc “does not seek to become a dominant economic force,” but rather wants to have “a major influence in an inclusive manner to work for change.”
“We don’t want a world where we have one or two global hegemons,” he added, explaining that such a distribution of power sows division in the global community.
Sooklal had earlier said in comments to journalists that Argentina, Iran, Saudi Arabia, and the United Arab Emirates were among those countries looking to join the bloc.
South Africa will host the BRICS annual summit this year, which will take place in Johannesburg from August 22-24, with President Cyril Ramaphosa having sent invitations to nearly 70 global leaders.