BRICS+ Expansion, Efforts to Promote National Currencies Pose Challenge to US Dollar Dominance
Date
11/6/2023 8:19:42 AM
(MENAFN) In a notable commentary, former special adviser on the White House Council of Economic Advisers, Joe Sullivan, has highlighted the growing challenge to the supremacy of the United States dollar posed by the BRICS group of nations. Sullivan contends that BRICS, comprising Brazil, Russia, India, China, and South Africa, is poised to erode the dollar's dominance in global trade, even without adopting a single unified currency.
Sullivan's observations, outlined in an article for Foreign Policy magazine, underscore the potential impact of BRICS+ – an expanded version of the bloc set to include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates starting January. This enlargement is projected to elevate BRICS+ to representing nearly half of the global GDP by the year 2040.
"BRICS+ may bring the Global South’s economic statecraft from the 20th to the 21st century… In the 21st century, non-Western economic blocs, such as BRICS+, can gain influence over the West... Twentieth-century oil embargoes may seem passé, even puny, relative to the 21st-century trade and financial actions that BRICS+ could theoretically now manage," notes Sullivan.
He further emphasizes that original BRICS members Brazil, China, and Russia are pivotal exporters of precious metals and rare earths, further fortifying their economic standing. With the inclusion of Egypt, Ethiopia, and Saudi Arabia – nations strategically positioned around the Suez Canal, a critical trade conduit – BRICS+ is poised to exert influence over a substantial 12 percent of global trade.
Sullivan's assessment raises important questions about the evolving landscape of global economics and the potential for a paradigm shift in trade dynamics. As BRICS+ gains momentum, the traditional dominance of the United States dollar may face formidable competition, ushering in a new era of economic influence in the international arena.
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