China’s President Xi Jinping is out here saying that BRICS is going to change the global economy for the better. He believes this group is a stable force that’s just going to keep growing and help everyone out.
For years now, the BRICS boys have been trying their best to ditch the US dollar in international trade and finance. They’re pushing to use their own currencies when trading with each other.
They’re also working on new payment systems so they don’t have to rely on SWIFT, and they’re even talking about creating a new reserve currency backed by their currencies. The BRICS also want to bring their currency and bond markets closer together.
They want to set up a common system for settling currency trades and link up their bond markets to keep trade surpluses within the group. This would also help boost liquidity when trading in local currencies.
Moreover, the bloc is developing a blockchain-based payment system called the BRICS Bridge. This platform is intended to connect the financial systems of member states, using gateways for settlements in their central bank digital currencies.
And the BRICS club is growing. Countries Egypt, Ethiopia, the UAE, and Iran joined this year. Belarus is also looking to get in on the action. President Alexander Lukashenko says the bloc can help revive Belarus’s economy and balance its trade and finances.
He believes joining in 2024 will bring stability to Belarus’s economy. Lukashenko said:
“We are interested in getting involved in integration processes in that space. BRICS is another footing to help us maintain balance and economic stability.”
China is backing Malaysia’s bid to join BRICS too. Malaysian Prime Minister Anwar Ibrahim sent a letter of application to Russia’s Vlad Putin, who is currently leading the group.
Chinese foreign ministry spokesman Lin Jian said that:
“We welcome more like-minded partners joining BRICS and working together to make the international order more just and equitable.”
Lin also pointed out that this expansion is a driving force for a more multipolar world and greater democracy in international relations.
He added that, “That is exactly why more and more emerging markets and developing countries, such as Malaysia, show a keen interest in BRICS and have expressed recognition for and hope to join the group.”
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