What Is BRICS & Its Purpose? End Of Dollar Dominance [Explained]

Most people are looking forward to knowing What is BRICS and why it was created. So here I am to explain to you about BRICS and its purposes.

What Is BRICS?

BRICS is a grouping of some eastern countries including Brazil, Russia, India, China, and South Africa. This group of 5 countries has been created to end the dominance of any one country in all three major aspects economy, military, and technology. Currently, America has this dominance and there is not even a single country to challenge a superpower like America.

So as a solution, a group of the world’s top emerging economies has been created to end the dominance of the Dollar.

History Of BRICS

The term BRIC was first coined by the Goldman Sachs economist Jim O’Neill in 2001 in his publication Building Better Global Economic BRICs and the history of BRICS also begins from here. In this publication, he described the world’s fast-growing economies and predicted that they would collectively dominate the global economy by grouping.

The first formal meeting between Brazil, Russia, India, and China was held on 16 June 2009 in Russia, and in 2010, South Africa also joined this group and it became BRICS from BRIC. After BRICS nations conduct annual meetings every year the preparations are still going on.

During these meetings, it was also announced that the world needs a global reserve currency that is more stable, diverse, and predictable. The current dominant currency Dollar was not criticized but somewhere it was the indication. And to create such a global and powerful currency, BRICS needs to expand and become more powerful.

The Foreign Minister of South Africa Naledi Pandor explained that 12 countries have shown interest in joining the group. In the expansion process, 6 countries – Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates have been invited to join the group during the 15th BRICS Summit held from 22 – 24 August 2023 in South Africa. Their membership will be effective from 1 January 2024.

From the first BRICS Summit to now, the developments are going on. The headquarters of BRICS is also situated in Shanghai, China. A global finance institute for BRICS has been created by the members that is called New Development Bank, All the five head members of BRICS have equal shareholding in NDB.

Final Words

We cannot expect a future where only one country will dominate, so BRICS is formed which will hand over the superpowers of the world to different economies and create a multipolar world.

Hope now you are well aware of What is BRICS and the history of BRICS. And the content I have shared was also useful and informative enough for you. Thanks for reading.

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