Saudi Arabia Joins BRICS, Steering Crypto Path from US Dollar Dominance

• Saudi Arabia's Official Entry into the BRICS Alliance
• Significance of Saudi Arabia's Inclusion
• Saudi Arabia's Official Acceptance
• Impact of Saudi Arabia's Entry
• Implications for US Dollar Dominance

Saudi Arabia's Official Entry into the BRICS Alliance

The Saudi Arabian government officially announced on the nation's state television that it will be joining the BRICS alliance. This confirmation comes after the country was among six nations invited to the 2023 summit. The year 2024 will mark the beginning of a new era for the BRICS alliance, with Saudi Arabia lining up alongside the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia as the latest additions.

Significance of Saudi Arabia's Inclusion

The incorporation of Saudi Arabia into the BRICS alliance was hailed as a beneficial and important channel in a report by Reuters. The last year has seen significant growth in the BRICS bloc, marking a significant geopolitical shift. The addition of new members is expected to continue this trend.

Saudi Arabia's Official Acceptance

Saudi Arabia's official acceptance of the invitation to join the BRICS alliance took place at the start of the New Year, following an invitation that was extended in August. The country's Foreign Minister, Prince Faisal bin Farhan, characterized the move as a means to enhance economic partnerships.

Impact of Saudi Arabia's Entry

Of the five nations offered a place in the BRICS bloc at the 2023 summit, only Argentina declined the invitation. Few nations, however, are likely to have as profound an economic impact on the alliance as Riyadh. This can contribute to the bloc's efforts to reduce global reliance on the US dollar.

Implications for US Dollar Dominance

Despite its well-established alliance with the United States, Saudi Arabia's willingness to join the BRICS alliance points to the potential role it could play in helping the bloc's de-dollarization efforts. With Saudi Arabia's involvement, the bloc could further intensify global pressure on the US dollar. This could be achieved by emphasizing the use of local currencies in international trade settlements, a strategy that Saudi Arabia could play a crucial role in promoting.

Edited by Jonathan Stoker