The Bloc Of Countries That Wants To Overthrow The US Dollar Is Set To Gain 6 New Members
The Bloc Of Countries That Wants To Overthrow The US Dollar Is Set To Gain 6 New Members — here's what the potential recruits have said about de-dollarization
Huileng Tan Mon, September 25, 2023
The BRICS bloc of emerging nations has invited six new countries to join the group. Iran has been the most vocal about de-dollarizing. The positions of other potential members vary. Including major oil exporters Saudi Arabia, Iran, and the UAE intensifies the de-dollarization debate.
The BRICS group of emerging nations may have wrapped up its annual summit with no common currency last month and members issuing contradictory commentary about the greenback — but it doesn't mean its drive to de-dollarize is over.
The bloc is anchored by Brazil, Russia, India, China, and South Africa. It has invited six countries to join the alliance, which hopes to upset the dollar's dominance and become an alternative to the dominant Western world order.
BRICS's newly invited members are Iran, the United Arab Emirates, Egypt, Argentina, Saudi Arabia, and Ethiopia. Iran, which has been heavily sanctioned by the US, has been the most vocal about transacting in non-dollar currencies, while the others have taken various positions about alternatives to the greenback.
The inclusion of major energy exporters such as Saudi Arabia, Iran, and the UAE on the list of potential BRICS members is a big deal because energy commodities — which are typically denominated in US dollars — are heavily traded and a key component of the global economy.
Therefore, any move by these energy exporters to trade in non-dollar currencies could gain momentum in the broader economy.
"Together with fellow oil and gas exporters Iran and the UAE, the admission of Saudi Arabia to the BRICS grouping will inevitably focus the debate on the use of non-dollar currencies in trade," wrote analysts at the Dutch bank ING in an August 24 note, referring to the ongoing debate over de-dollarization.
Here's what the six new potential members have signaled about the move away from the dollar.
Heavily sanctioned Iran has long been trying to de-dollarize
Iran — a major oil producer — has been on a drive to de-dollarize for years.
Tehran made a major push to de-dollarize in a May meeting with 11 other countries including India, Russia, and Sri Lanka.
Given that Iran has been sanctioned for years, the Middle Eastern country has been discussing using the yuan to settle trade as far back as 2010. In 2012, China started buying crude oil from Iran using the yuan.
https://finance.yahoo.com/news/brics-bloc-may-soon-6-004226637.html