According to IMF, BRICS vs G7 (GDP Purchasing Power Parity) Charts.

June 23 (Cointime) - BRICS is a group of five emerging economies - Brazil, Russia, India, China, and South Africa - that was formed to promote collaboration and communication among its member nations. The alliance holds annual summits to discuss various issues such as trade, finance, development, energy, and technology, and has established mechanisms such as the New Development Bank and the Contingent Reserve Arrangement for economic development and financial stability.

The US dollar's importance is declining due to challenges such as debt, inflation, interest rate hikes, and financial market uncertainty. The BRICS nations, including Brazil, Russia, India, China, and South Africa, are seeking alternatives to reduce their reliance on the US dollar. They are exploring the possibility of creating a new currency for intra-trade and commerce, potentially challenging the dominance of the US dollar in the global financial order. Countries like China, Russia, and Iran are diversifying their foreign exchange reserves and considering using regional or stronger currencies like China's Yuan to reduce risks related to the falling value of the US dollar. 

Saudi Arabia is in talks with the New Development Bank (NDB), also known as the "BRICS bank," about becoming its ninth member. This move could strengthen the bank's funding capabilities, especially as Russia faces global sanctions. The NDB was established as an alternative to Western-led Bretton Woods institutions and has already made significant strides in asserting its influence in the global financial system. If Saudi Arabia joins, it would deepen ties with the world's second-largest oil producer, potentially leading to a shift in global power alignments and a reduction in dependence on the US dollar for oil and gas trade settlements.

The leaders of China, Russia, and Brazil have had high-level phone conversations to discuss their collaborative work within the BRICS bloc, which comprises Brazil, Russia, India, China, and South Africa. The discussions anticipate the forthcoming leaders’ summit, with significant discourse centering on the possibility of a common BRICS currency. President Lula, an advocate for a transition away from the U.S. dollar to national currencies and a prospective shared BRICS currency, spoke with President Putin and President Xi. These engagements underline the potential of the BRICS economic bloc to shape the global economic landscape and the growing influence of the participating nations. The group’s push for ‘de-dollarization’, a shift away from the U.S. dollar as a global reserve currency, is a matter that is expected to be deliberated upon at the leaders’ summit in August.

China and Russia are collaborating to create a new payments infrastructure that will integrate the BRICS currency and streamline cross-border transactions. The system is expected to be officially unveiled after the BRICS summit in August 2023 and will also incorporate the Shanghai Cooperation Organization (SCO) group. The initiative is aimed at deepening trade and economic cooperation between the BRICS nations and within the broader SCO alliance, and challenging the hegemony of the U.S. dollar. However, India has expressed skepticism towards China's agenda and concerns have surfaced regarding its alleged use of the BRICS partnership as a stepping stone towards global dominance.

The BRICS organization is considering the launch of a global currency that would bypass the US dollar and is preparing to respond to the surge of applications from countries that share similar goals. South Africa, in charge of this year's BRICS chairmanship, revealed that the group is creating guidelines to deal with the rising interest from nations that want to become part of the economic bloc.

The BRICS nations, which make up one-third of global economic output and include Brazil, Russia, India, China, and South Africa, are considering introducing a common currency to challenge the dominance of the U.S. dollar in global trade. This move is aimed at establishing a more accessible and fair medium for international trade.

Ana Palacio, a former World Bank Executive, has suggested that the BRICS countries - Brazil, Russia, India, China, and South Africa - may be considering alternatives to the US dollar, including the use of a shared currency. Palacio believes that the quest for a "new order" is driven by a perceived gap between the current Western-led global governance system and the interests of some developing countries. At least 19 countries have expressed interest in joining BRICS, including Argentina, Turkey, and Saudi Arabia. Bitcoin is also being considered as a possible alternative currency due to its potential to mitigate currency risks and increase efficiency, as well as its potential to facilitate trade and financial transactions among countries outside the traditional banking system.

The BRICS countries are developing guidelines to address the growing interest from countries seeking to join the economic bloc. South Africa's Foreign Affairs Minister Naledi Pandor stated that many countries are looking for a modern, inclusive, and multipolar forum focused on the common good. The BRICS nations, comprising Brazil, Russia, India, China, and South Africa, have been making efforts to expand their global influence and have received formal and informal applications from 13 and six countries, respectively. The group is also working on creating a common currency to reduce reliance on the US dollar, which will be discussed at the BRICS leaders' summit in August.