BRICS EXPANDS TO 10 MEMBERS
Existing Members:
Brazil, Russia, India, China, and South Africa
New Members:
Egypt, Ethiopia, Iran, Saudi Arabia, and UAE
However, Argentina has officially announced they are not joining the trading bloc. Which is a counter-productive move from the recently elected President Javier Milei. His predecessor, Alberto Fernández, had positioned Argentina to gain financial benefits from increased trading opportunities.
There has been expressed interest for "intensifying bilateral ties to trade and develop investment flow." However, without actually joining and becoming a member, it is wishful thinking.
Analysis & Implementations
Argentina declining BRICS is only going to deepen their financial crisis. Choosing the US dollar over emerging markets is self-destructive. China has taken away a currency swap (worth 6.5 billion US dollars) with Argentina, which acts as a lifeline for the trade between the two nations. Which will remain until there is clear evidence of wanting to engage and cooperate with Beijing regarding trade.
BRICS has already overtaken G7 regarding global GDP. Five new members have joined, increasing the importance of BRICS. The practical move for Argentina would be actively creating new financial alliances. Having access to a wider range of markets is the best long-term strategy.
The trade war is happening, and the existing system is losing. The US dollar is in decline and will harm the economies of every nation that chooses to support the US dollar. BRICS represents emerging and developed economies. China is the largest economy in the world and cannot be replaced. The US dollar is being replaced as their currency depends on international trade, which is declining and is predicted to continue. The safety and security of the US dollar has been compromised due to sanction, freezing assets and the threat of "permanent confiscation."
A new financial system with integrated cross-border trade offers an alternative for respectable financial security. It will be interesting to see how events unfold, as more countries have expressed interest and are enthusiastic to become new members.
