BRICS Countries & Latest BRICS Currency News
BRICS currency and countries wanting to join BRICS is one of the most discussed things today. This post gives you detailed insight into the BRICS and also brings the latest BRICS currency news. Capitalofinfo.com is created to update the readers about the information related to different countries and the political world news.
Read further to know what is BRICS and its purposes are. BRICS is a group of the fastest growing economies of the world; Brazil, Russia, India, China, and South Africa. South Africa is the latest addition in this grouping.
BRICS Formation & History
The term BRIC was first coined in 2001 and later on turned BRICS as South Africa joined. It was conceptualized with the purpose of foreign investment strategies. The term was introduced by Roopa Purushothaman, a research assistant in the report. Jim O’Neill was an economist who introduced the term to refer to the fast growing countries that would be dominating the globe by 2050.
Initially, four countries namely, Brazil, Russia, India, and China met in 2006 in New York City. Later on in 2009, a diplomatic meeting was held in Russia. The meeting was attended by the foreign ministers of the four countries. You will find more inforamtion related to the summits of BRICS on official portals including https://brics2021.gov.in/
What Are Purposes of BRICS
BRIC was formed to initiate and develop cooperation among developing nations for the benefit of the global economy.Reforming financial institutions was also one of the purposes of the entity. The meeting held in Russia discussed the need for a global reserve currency. This sparked a fall in the US dollar value against other major currencies of the world.
Joining of South Africa in BRICS
With the participation of South Africa in the group, BRIC became BRICS. And it became a group of five fast developing economies of the world. The process of joining South Africa started in 2010. The formal admission of South Africa too happened in the same year. Following this, China officially invited South Africa to join BRIC in December 2010 which made this international association called BRICS. Jacob Zuma was the President of South Africa then and attended the summit in 2011 that took place in Sanya, China.
Since then, many countries are wanting to join BRICS.
Click here to know how many countries are there in the world in 2023.
How Many Countries Want to Join BRICS
After the official joining of South Africa, BRICS attracted numerous other countries. Here is a list of the countries that have shown interest in joining the bloc.
- Saudi Arabia
- United Arab Emirates
The first seven countries were informed by the South African Foreign Minister ahead of the BRICS summit. While the ambassador of Russia to Egypt announced that Egypt is applying to join the blog.
Later on, many other countries have applied to join BRICS.
Other countries that applied to become member of BRICS –
Apart from the above lists, Afghanistan, Cuba, Angola, Belarus, DR Congo, Honduras, Kazakhstan, Syria, Sudan, Turkey, Tunisia, Uganda, Uruguay, Venezuela, Zimbabwe, Comoros, Cuba, Gabon, Guinea-Bissau, Nicaragua, Senegal, have also show interest to join BRICS.
Further we have discussed the components of BRICS.
All You Want To Know About BRICS Currency
BRICS currency is a potential common currency being discussed among the member nations of the international group. The member countries are discussing the common currency to simplify international trade and to reduce the cost of cross border financial transactions.
However, BRICS currency is not going to be an agenda of the summit to be held in August 2023 in South Africa. But it is obvious that the member nations will continue to switch the US Dollar. For any further developments, we will update any BRICS currency news here. Though there is no clear pathway for the BRICS currency yet, the BRICS countries are paving way to reduce their dependence on the US Dollar. The central banks of the countries are shifting their reserves from US dollars and into gold.
This has sparked talks of de-dollarization. Russia is the first country that is talking about the new global currency similar to the Euro. The new currency would be used for international trade that would take place among BRICS nations. However, it would have different challenges as the countries are not unified geographically unlike European Union nations.
New Development Bank
Formally known as BRICS Development Bank, NDB or New Development Bank is currently operated by 5 member nations. The primary purpose of the bank is lending finance for infrastructure projects. While the 5 nations contribute to the bank, more than 50 projects are underway. Recently, UAE, Uruguay, Egypt, and Bangladesh have also been added as members of BRICS New Development Bank.
Contingent Reserve Arrangement (CRA)
BRICS CRA is a financial framework created to provide protection against ill effects of global financial pressures. It protects when any member country currency is adversely affected by global financial pressures. The framework is seen as an answer to the International Monetary Fund. CRA was formed in 2015 by the BRICS countries.
The concept of a common currency is under pipeline and it is not known yet when BRICS currency will be released. If you are interested to know about BRICs currency and the potentialities of BRICS superpower, we would be updates here. As of now, financial experts are forecasting that it would be a major blow to the dominance of US Dollars in the international market. Caiptalofinfo.com also provides a complete list of all the countries of the world with capital cities as well as a list of 50 states of the USA.