The five nations BRICS had a slow start at the
beginning with five nations joining together to form this grouping in June
2009. Right now there are 24 countries that have expressed willingness to join
out of which more than one third have formally applied and their applications
would be taken up in the 15th BRICS summit to be held August 2023.
According to https://watcher.guru the
following 24 countries have expressed
desire to join BRICS: these are: Argentina, Afghanistan, Bahrain, Bangladesh,
Belarus, Egypt, Indonesia, Iran, Kazakhstan, Mexico, Nicaragua, Nigeria,
Pakistan, Saudi Arabia, Senegal, Sudan, Syria, Thailand, Tunisia, Turkey, UAE,
Uruguay, Venezuela, and Zimbabwe.
Out of these 24 countries the following 9 countries have formally applied to join BRICS at the time of writing; these are: Algeria, Argentina, Bahrain, Egypt, Indonesia, Iran, Mexico, Saudi Arabia and UAE.
Currently, BRICS power with five members alone speaks volume of its geoeconomics tenacity. Here is the sampling:
Land Area – 26% of global extent
Population – 3.3 Billion 40% globally
GDP Contribution- 31.5% of global figure
Just look at the population parameter: Indonesia fourth largest with 275.5 million together with Pakistan fifth largest with 235.8 million could give more punch. Nigeria, Bangladesh and Mexico together brings yet another block of 517.2 million. Altogether these five countries contribute a whopping 1. 029 billion people into the BRICS group.
A common currency is to be introduced at the Johannesburg meet. Initially this currency would be trading instrument and by and by it would transform into a reserve currency as well with approximate weighting of the major currencies in a basket. At present the name of currencies of five members begin with alpha R. Real, Ruble, Rupee, Renminbi and Rand. Saudi Riyal and UAE Dirham are two top notch figures in the currency market today. The bottom line is tectonic shift is taking place in the field of geoeconomics.
In addition to Trading/Reserve currency, BRICS proposes to encourage bilateral trading in local currencies. For example, Egypt could trade with Brazil in Real, Russia in Ruble in India in Rupee, China in Renminbi and South Africa in Rand where Egyptian Pound would be used as settlement currency vice versa. It is also proposed to develop a common payment and settlement system for bilateral and multi-lateral trade amongst member countries.
True marvel is not the payment and settlement system but the fact that this system cannot be subjected to American & Western sanctions. That makes BRICS a geoeconomics power house. West should beware that their grip over global power spectrum is slipping slowly yet steadily.
Cheers!
Muthu Ashraff Rajulu
Business Strategist
Mobile: + 94 777 265677
E-mail: cosmicgems@gmail.com
Blog: Business Strategist
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