With only weeks until South Africa hosts the annual two-day summit of BRICS nations in June, one official revealed that many countries have shown an interest in joining the bloc of emerging-market states.
BRICS comprises five countries—Brazil, Russia, India, China, and South Africa—with prominent emerging market economies.
“What will be discussed is the expansion of BRICS and the modalities of how this will happen,” Sooklal said. “Thirteen countries have formally asked to join, and another six have asked informally. We are getting applications to join every day.”
In February, Sooklal told the business news network that there had been “over a dozen countries that have knocked on the door.” They included Iran and Saudi Arabia, who made formal submissions for entry.
Russian Foreign Minister Sergey Lavrov also confirmed that a dozen nations expressed interest in joining BRICS earlier this year, including Bangladesh, Mexico, Turkey, the United Arab Emirates, and Venezuela.
Since last year’s meeting, there has been some debate about expanding the economic alliance.
China proposed increasing the number of BRICS countries, arguing that it would enhance its diplomatic power. However, some members are concerned that additional nations would dilute each nation’s influence.
The most recent addition to the bloc was South Africa, which was allowed to join in 2006.
Argentina has apparently been one of the interested parties.
Argentine Ambassador to China Sabino Vaca Narvaja recently met with former Brazilian President Dilma Rousseff and Chinese Foreign Minister Qin Gang about gaining entry into the BRICS Development Bank, also known as the New Development Bank.
The State of BRICS Today
In a March 26 paper published in the journal Global Policy, Jim O'Neill, the former chief economist at Goldman Sachs, recommended that the bloc bolster the coalition. However, he also suggested the pact should adhere to the initial and primary criteria of promising economies and large populations.O'Neill argued that the U.S. dollar maintains “a far too dominant role in global finance,” and an enhanced BRICS arrangement could enable the creation of a multicurrency international financial system.
This year, China and India are projected to grow 5.2 percent and 5.9 percent, respectively. By comparison, the United States and Euro Area are forecast to expand by 1.6 percent and 0.8 percent, respectively.
Experts contend that the increasing might of BRICS could allow the bloc to establish a currency. One of the chief subjects at the upcoming summit will be developing a new currency to help erode the U.S. dollar hegemony.
There has been plenty of speculation about how a potential BRICS currency would work. Still, during the 2022 summit, Putin told one forum that an international reserve currency would likely resemble a “basket of currencies” of the countries. Others have purported that gold could have a significant role.
Frank Holmes, the CEO and chief information officer of U.S. Global Investors, said that he believes the world is transitioning into a multi-polar society, and “gold plays an important role in this multi-polarization.”
“At the same time, BRICS countries will continue to be net buyers as they seek to diversify away from the dollar,” he said.
The current administration has said that it’s monitoring the situation and will continue to support keeping the global financial system intact for dollar dominance.