They now account for a third of the world’s GDP

Argentina, Egypt, Ethiopia, Iran, the United Arab Emirates and Saudi Arabia join the BRICS group. “The accession will enter into force as of January 1, 2024,” South African President Cyril Ramaphosa told a joint press conference of the leaders of the five countries that currently make up the bloc. Chinese President Xi Jinping added that the expansion of BRICS with six other countries “represents a new chapter in the cooperation of emerging and developing countries,” expressing his satisfaction with the agreements reached.

What is the BRICS group?

This is the second time that the BRICS group has decided to expand. The bloc was formed in 2009 by Brazil, Russia, India and China. The group’s name was coined by banker Jim O’Neill, who in 2001 used the term BRIC, minus South Africa, to draw attention to these countries’ strong growth rates. South Africa joined in 2010. The Brazilian President, Luiz Inacio Lula da Silva, confirmed that with the new entries the group would represent 36% of global GDP and 46% of the world’s population. “The Islamic Republic of Iran has become a member of the BRICS group. Full membership of the group of emerging economies in the world is a historic development and a strategic achievement for the foreign policy of the Islamic Republic. Tehran’s membership in the group of emerging economies. So far, 22 countries have applied to join BRICS, including the six countries that will join in January. They are: Algeria, Argentina, Bangladesh, Bahrain, Belarus, Bolivia, Venezuela, Vietnam, Honduras, Egypt, Indonesia, Iran, Kazakhstan, Cuba, Kuwait, Nigeria, United Arab Emirates, Palestine, Saudi Arabia, Senegal, Thailand, and Ethiopia.

The single currency hypothesis

On the occasion of the 15th meeting of the BRICS group in Johannesburg, South Africa – in which all the leaders of the five countries that make up the group participate in person, except for Russian President Vladimir Putin who has a pending arrest warrant from the international court. Criminal Court – Brazilian President Lula da Silva proposed a common alternative currency to the dollar for trade between the member states of the group. The progressive leader said, referring to the dollar, that this currency “will allow greater trade between countries like Brazil and South Africa without relying on the currency of a third country.” “Cooperation between the countries of the Global South is essential to address inequality and the climate crisis and for a more balanced and equitable world,” Lula added. According to Jim O’Neill, the idea of ​​creating a BRICS currency for trade is “ridiculous”. Banker Al commented, “The BRICS group has not achieved anything since its first meeting.” financial times.