The BRICS group officially welcomed five new members, Egypt, Iran, Saudi Arabia, the United Arab Emirates and Ethiopia.
Five new member states have joined the BRICKS group
Their accession came into force on 1 January 2024, marking a major expansion for the bloc originally founded by Brazil, Russia, India, China and South Africa.
This expansion comes after several requests for participation in recent years, reflecting the growing importance and influence of the BRICS group, Egyptian media reports, noting:
"The Johannesburg Summit in August 2023 formally invited the five new members to join, recognising their economic potential and strategic positions in their respective regions.
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Russia takes over the Presidency
Russian President Vladimir Putin, who takes over the rotating chairmanship of the BRICS in 2024, stressed the group's commitment to "strengthening multilateralism for equitable global development and security".
Russia plans to host over 200 political, economic and social events in 10 cities throughout the year, culminating in the Kazan Summit in October.
Putin also expressed his confidence that BRICS activities will have a positive impact on the international system.
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Νέες αποκαλύψεις! Αξιωματούχοι του ποδοσφαίρου εμπλέκονται με τα επεισόδια στον Ρέντη και τον ξυλοδαρμό του Τζήλου
He argues that an increasing number of countries are seeking alternatives to the US-led "rules-based order" and prefer to be guided by their own interests and those of their partners. This, he believes, will create beneficial conditions for shared development.
These objectives were reiterated by Putin at his year-end press conference, where he pledged to implement the decisions taken at the Johannesburg Summit, including those related to the expansion of BRICS membership.
The addition of these five new members significantly increases the economic and political influence of the group, representing a combined population of over 2.5 billion and a collective GDP of over $16 trillion.
The expansion is expected to have huge geopolitical implications, as it could be extremely important for its multipolar objectives.
However, one of the previously invited states, Argentina, turned down the opportunity to join the bloc.
The country saw a new president rise to power in Javier Milei. His subsequent attempt to dollarize the Latin American country shows his changing priorities in the bloc that rejected entry.
In addition, Bloomberg reported that the alliance already has nearly 30 countries seeking entry into the bloc during its upcoming expansion.
Moreover, ongoing expansion efforts have already begun as the alliance expects an additional 6 countries to join its ranks at the upcoming annual summit in Russia.
BRICKS promotes de-diversification - Serious economic turbulence for the US is coming
The BRICS alliance is trying to suppress the US dollar by using local currencies to settle cross-border transactions.
BRICS members India, China, China, Russia, the United Arab Emirates and Saudi Arabia have already started using local currencies for international trade arrangements.
China and Russia are trying to persuade other developing countries to follow suit and cut ties with the US dollar.
The move could be disastrous for the US economy, as America will find it difficult to finance its deficit.
If the US fails to import dollars, the currency will circulate back home and lead to inflation. The move could cause prices to skyrocket with housing, rent and basic daily necessities becoming expensive and unaffordable.
Five (5) US sectors that will be affected if the BRICS do not use the dollar in trade
A total of 5 US financial sectors could be affected by the BRICS stop using the dollar for international trade. Financial sectors that could begin to decline include banking, foreign exchange, tourism and manufacturing.
Here are the 5 areas that will be affected if the US dollar is not used for settlements between BRICS members.
Banking and financial sector
Technology - News - Social media
International Trade and Investment
Consumer Goods and Retail Trade
Travel and Tourism
First and foremost, the banking and financial sector will be hit the hardest as foreign exchange will start to decline.
Second, the BRICS are seeking to create their own online services and not depend on US technology for news and social media.
Third, foreign investors will stay away from the US dollar as the debt and deficit crisis worsens.
In addition, if the US dollar returns home, the cost of everyday staples will become more expensive.
Finally, tourists will start paying local currencies for their travel and leave the US dollar behind.
China and Singapore already make tourists pay in local currencies in their respective countries rather than in US dollars.
In conclusion, the BRICS have many plans up their sleeves aimed at damaging the prospects of the US dollar. Moreover, if the Biden administration does not act quickly to counter the BRICS, halting the dollar's decline could become much more difficult.
The implications for Greece
Greece is firmly attached to the American and European chariot, through NATO-EU membership.
Turkey for its part is flirting with the BRICS while belonging to NATO and supposedly wanting to join the EU.
Egypt's entry into the BRICS, we believe, will gradually mark its distancing from the US-EU-Israel, while it will play a positive role in Erdogan's re-engagement with it, a fact that contradicts Greek interests in the SE Mediterranean.
The entry of Iran, Saudi Arabia and the UAE into the BRICS is interpreted as an attempt to de-Americanize the Middle East, while it will have a significant impact on the price of oil, "regulating" it, causing turbulence in European economies, including Greece.
Finally, it remains to be seen how East-Med, the Euro-Asian interconnector and the Egypt-Greece power cable interconnection will be affected.
