The BRICS summit has been anticipated for quite some time now and ever since the speculations of the common BRICS currency and more discussions, this is bound to be the most exciting session of the BRICS.
The BRICS group consists of major emerging economies like Brazil, Russia, India, China and South Africa. The 15th Heads of State and Government Summit of the BRICS will take place in Johannesburg from August 22–24, 2023.
Amongst the heads of state, South African President Cyril Ramaphosa, Chinese President Xi Jinping, Brazil’s President Luiz Inacio Lula da Silva and also India’s Prime Minister Shri Narendra Modi are expected to attend.
However, Russian President Vladimir Putin will not attend in Person due to an arrest warrant issued by the ICC for an alleged war crime in Ukraine, but he will be participating in the summit virtually.
The question on everyone’s mind is what’s the main agenda of the BRICS summit?
Well, without further adieu, let’s begin!!
BRICS Expansion:
BRICS expansion has been on the radar for a while now as several countries have requested membership in the group.
According to South Africa, more than 40 nations, including Saudi Arabia, Iran, the United Arab Emirates, Argentina, Indonesia, Egypt, and Ethiopia, have indicated interest in joining the BRICS.
In this tussle, China and Russia show a keen interest in adding allies to their cause. Even though their aims are different, the aim is to be a force to be reckoned with.
China, seeking to expand its influence as it tussles with the United States over trade and geopolitics, supports BRICS expansion, while Brazil is skeptical of this union.
Russia, however, hoping to overcome its diplomatic isolation over the Ukraine war, is keen to bring in new members as is South Africa. However, India is undecided on this aspect.
BRICS Bank:
The BRICS Bank has been in the think box for a while now. The group is hinted to discuss boosting local currency fundraising and lending within the New Development Bank (NDB), or the so-called BRICS Bank.
South Africa’s Finance Minister Enoch Godongwana believes that Local currency use will help in de-risking the impact of foreign exchange fluctuations.
With the ‘de-dollarization’ movement in full swing, the dollar has gained against emerging market currencies since Russia invaded Ukraine and the Federal Reserve began raising interest rates to fight inflation in early 2022, making dollar debt a costlier endeavor for the countries that use it.
As the NDB is expanding, the summit is deemed to be a key platform for attracting more member countries as well.
Economic Alliances:
One of the main agendas of the BRICS would be the discussions to improve economic ties between their diverse economies.
They are expected to engage in a series of discussions about trade and investment opportunities in sectors ranging from energy cooperation and infrastructure development to the digital economy and the job market.
Furthermore, discussions with foreign leaders are anticipated to take up much of the summit’s last day. 67 leaders from Africa, Latin America, Asia, and the Caribbean were invited to the conference.
Final note:
This BRICS summit is going to be the light that will spark a change in the world and several economists and investors alike are looking towards the developments of the een.
Will it cause volatility in the market?
Will it change global geopolitics?
We’ll have to wait and see. More updates are on the way and we’ll be covering them continuously here!!
Until then, Happy Trading!!
Commodity Samachar
Learn and Trade with Ease