BRICS Alliance set to make big announcements at summit

At the 2023 BRICS annual summit, the economic alliance made a historic announcement. Indeed, it invited six countries to join its ranks in what was its first expansion effort since 2001. As the next summit approaches, the BRICS bloc is preparing to make a slew of announcements that will rival those of the previous year.

There is no shortage of ambitious projects for the alliance. With the alliance firmly committed to its dedollarization initiatives and growth strategies, the geopolitical sector is expected to see monumental announcements unfold under Russia’s presidency of the upcoming summit.

Also read: BRICS: Leading economist says US dollar ‘getting worse’

BRICS Summit 2024 will continue expansion trend

Source: Bloomberg

Among the rather long list of potential BRICS announcements that will take place at the 2024 summit, expansion appears to be the most likely. This decision was the highlight of last year and proved to be a huge success.

After its incarnation in 2023, the RBICS bloc welcomed five nations into the collective. Specifically, these were Saudi Arabia, United Arab Emirates (UAE), Iran, Egypt and Ethiopia.

Although Argentina was the sixth country to receive an invitation, it rejected the offer due to regime change. Javier Milei was elected president as his administration sought to dollarize the economy.

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Source: Getty Images

Also read: 5 new countries seeking to join the BRICS Alliance

However, the five additional members have already proven to strengthen and enhance the bloc’s growth prospects for years to come. Additionally, the alliance has already confirmed that a similar expansion will be present in 2024.

Specifically, in December 2023, India’s foreign minister confirmed that the alliance had already agreed on a new six-country expansion effort in 2024. Although this agreement took place, it was also declared that the bloc still had to decide who would be invited.

Over the past two years, there has been no shortage of countries expressing interest in joining the alliance. From Nigeria to Zimbabwe, a multitude of countries have already done preliminary work to increase their chances. South African Foreign Minister Naledi Pandor noted in February that the list of candidate countries for entry exceeded 34.

Will a new currency project come to fruition?

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Although an expansion announcement is all but assured, there are some concerns about the bloc’s ongoing monetary project. The alliance continued its work on the development of its own national currency. However, they also highlighted the ongoing work required to make this a viable business.

Russia, holder of the 2024 BRICS presidency, has declared its efforts to implement a BRICS payment system. This arrived in the form of BRICS Pay, but it also differs in its goals as an integrated system to facilitate cross-border payments.

Additionally, the bloc is working on a digital currency option to grant it its own native currency offering. Buzz around the project has been spreading throughout 2023, and many expected this announcement to take place around then.

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Source: Reuters

Read also: BRICS: China and Russia make a huge announcement

However, thanks to continued work over the last year, many are now pointing to 2024 as the day it is announced. The potential for this announcement is there, but it may be delayed while the project undergoes necessary development and testing.

Conversely, the BRICS alliance is still expected to make an announcement on the status of its active currency efforts at its 2024 summit. The bloc’s countries have not hesitated to commit to that idea. Therefore, a signal indicating its direction regarding a potential launch date should arrive.

The alliance will also likely share an update on its dedollarization plans. Whether in the form of renewed promotion of local currency settlement, or other means. Decreasing international dependence on the dollar constitutes a pillar of the bloc’s infrastructure. This is likely to continue regardless of BRICS announcements at the 2024 summit.


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