Key takeaways
- The BRICS countries are increasingly moving away from the US dollar in global trade.
- Russia and China hold 74% of the BRICS gold reserves, and discussions are growing about a potential BRICS currency partly backed by gold.
- The summit theme highlights the commitment of the BRICS countries to shaping a multipolar global order by promoting multilateralism for equitable global development and security.
The 16th BRICS summit is being held in Kazan, Russia, attracting the attention of investors and observers around the world. The summit comes amid growing speculation about the economic motives of the BRICS countries, especially China and Russia, which have increasingly distanced themselves from the US dollar in global trade.
Discussions have intensified over a potential BRICS currency partly backed by gold, fueled by gold purchases by central banks from BRICS members and their allies over the past three years. These measures have resulted in the BRICS countries holding an estimated 20% of the world’s gold reserves, reinforcing the narrative of a potential challenge to the dominance of the US dollar.
Diversification of economic interests
Leading this trend is Russia and China, which together own 74% of the gold reserves in the BRICS countries. Russian President Vladimir Putin recently stated that despite sanctions imposed on his country, Russia has successfully navigated the economic landscape by switching to national currencies for 95% of foreign trade. He attributed this shift to actions against Russia, saying they “did it themselves, with their own hands.” They thought we would collapse.
World politics and geopolitics
He – she Feature The summit report, titled “Strengthening Multilateralism for Equitable Global Development and Security,” highlights the commitment of the BRICS countries to shaping a multipolar global order.
This year’s summit also has a wide-ranging agenda, including discussions on rising tensions in the Middle East and strengthening cooperation between BRICS and the Global South. The inclusion of “partner countries” underscores the growing influence and appeal of the BRICS alliance. Representatives from nearly 40 countries will join the BRICS Plus/Outreach meeting on the final day, signaling a broader shift in global economic and political dynamics.
The whole world is now watching the results of this crucial multi-day meeting that began today. The outcome of the BRICS summit will not only affect economic relations, but also change geopolitical dynamics around the world. While the BRICS countries are committed to an alternative path, many countries are wondering how these developments could affect their position in global trade and international relations.
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