BRICS Shift: US Dollar Dethroned as Reserve Currency in 2024

• Expansion of BRICS Alliance and its Impact on US Dollar as Global Reserve Currency
• Further Expansion of the BRICS Alliance
• The Current Status of the US Dollar
• Potential New Members of BRICS

Expansion of BRICS Alliance and its Impact on US Dollar as Global Reserve Currency

In 2023, the BRICS alliance invited Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, Argentina, and Ethiopia to participate in their summit. Out of these six nations, four accepted the invitation and joined the BRICS bloc with the objective of moving away from the US Dollar as the world's leading reserve currency, commencing in 2024.

Further Expansion of the BRICS Alliance

A subsequent summit is set to take place later this year, with anticipation of additional countries joining the BRICS+ initiative in its mission of de-dollarization. The previous year saw substantial growth in the BRICS alliance, expanding from five to nine member nations, with Saudi Arabia expected to come on board, raising membership to ten.

In anticipation of future growth, India, a member of the alliance, has revealed that an expansion plan involving six more countries is already in agreement. The newcomers will actively participate in the full-scale abandonment of the US Dollar as a reserve currency.

The Current Status of the US Dollar

The US Dollar currently holds the position as the favored currency globally, with several nations keeping it in reserve and using it in trade relations. Nevertheless, a weakening of the US Dollar last year raises questions about its future stability. America's encounter with inflation in 2023 and the subsequent rise in interest rates may impact its status as the top reserve currency. Numerous nations across Africa, Asia, and even the West have shown interest in the BRICS alliance and its mission, which could potentially weaken the US Dollar's hold as the primary global reserve currency in 2024.

Potential New Members of BRICS

Reports suggest that Pakistan, Bolivia, Senegal, and Cuba, among other countries, have already submitted their applications to join BRICS+ in 2024. In addition to these, there are dozens of other nations that have expressed interest in becoming part of the BRICS bloc. If these nations become part of the bloc within the year, the US Dollar's position as the leading global reserve currency in these countries may be subject to change.

Edited by Jonathan Stoker