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Lavrov Points Out the Interest of 30 Countries in BRICS Amid Challenges Posed to US Dollar by China-Saudi Arabia Agreement

As disclosed by Sergey Lavrov, Russia’s Head of Foreign Affairs, the organization known as BRICS, which includes Brazil, Russia, India, China, and South Africa, is projected to expand its membership in 2024. New inductees will include Iran, the United Arab Emirates (UAE), and Saudi Arabia, among others. It was noted that about “30 countries are keen on establishing affiliation ties with the organization.” Furthermore, Beijing and Riyadh announced the signing of a currency swap deal worth 50 billion yuan ($6.93 billion) at the end of November, a move seen by some as a conscious attempt by Xi Jinping to challenge the hegemony of the U.S. dollar.

Lavrov: Enlargement of BRICS Attracts Global Interest

The BRICS organization drew considerable global interest this year. A monumental event occurred during the 15th Summit held in Johannesburg, South Africa, as an invitation to join BRICS was extended to countries like UAE, Saudi Arabia, Argentina, Egypt, Ethiopia, and Iran.

Lavrov stated during a press conference that alongside these prospective new members, about 30 other nations expressed interest in establishing partnerships with BRICS.

The high-ranking Russian official declared that “BRICS is an essential pillar of a multipolar world, and work will continue to reinforce its position globally.” He also opined:

“Our BRICS strategy will focus on bolstering multilateralism for equitable development and global security. More than 200 events, encompassing economic, political, and public engagements, will be hosted across various Russian cities, with the grand BRICS summit set for Kazan next October.”

China-Saudi Currency Swap Agreement Could Displace American Dominance

Meanwhile, a significant 50 billion yuan currency swap deal has been forged between Xi Jinping’s China and Saudi Arabia. Melissa Lawford, a distinguished journalist, has argued that it could undermine American dominance in global finance. With an initial period of three years, the agreement is designed to enhance financial cooperation and promote trade, investment, and use of domestic currencies.

The report also suggests that President Xi has ambitions to challenge the worldwide dominance of the dollar, and that member nations of BRICS are considering creating a common currency for use within emerging markets.

Lavrov articulated future plans for BRICS to bolster partnerships, particularly through initiatives such as BRICS Plus and Outreach platforms. The goal is to amplify the global influence of BRICS nations, secure additional trade agreements (including currency swaps), and encourage partnerships with other countries and regions.

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Frequently asked Questions

FAQ 1: What is the significance of Lavrov’s statement about the interest of 30 countries in BRICS?

Answer: Lavrov’s statement highlights the growing interest of 30 countries in BRICS (Brazil, Russia, India, China, and South Africa). This indicates that BRICS is gaining prominence as an alternative global economic and political bloc, challenging the traditional dominance of the United States.

FAQ 2: How does China-Saudi Arabia agreement pose challenges to the US dollar?

Answer: The China-Saudi Arabia agreement poses challenges to the US dollar as it promotes the use of local currencies, such as the Chinese yuan and the Saudi riyal, in bilateral trade between the two countries. This reduces the reliance on the US dollar as the primary global reserve currency, potentially weakening its status and influence in international markets.

FAQ 3: What does the interest of 30 countries in BRICS indicate about the global geopolitical landscape?

Answer: The interest of 30 countries in BRICS reflects a shifting global geopolitical landscape where countries are seeking alternative partnerships and alliances beyond the traditional Western-centric framework. It suggests a reconfiguration of power dynamics and a desire for a more multipolar world order.

FAQ 4: How does BRICS challenge the dominance of the United States?

Answer: BRICS challenges the dominance of the United States by presenting an alternative model for economic cooperation, trade, and development. Through initiatives like the New Development Bank and the Contingent Reserve Arrangement, BRICS aims to provide viable alternatives to existing Western-dominated financial institutions, reducing dependency on the US-led economic order.

FAQ 5: How does the China-Saudi Arabia agreement impact the US dollar’s status as a global reserve currency?

Answer: The China-Saudi Arabia agreement undermines the US dollar’s status as a global reserve currency by promoting the use of other currencies for bilateral trade. This diversification reduces the demand for US dollars, potentially diminishing its role as the primary currency for international transactions and weakening its standing as a global reserve currency.

FAQ 6: What are the potential implications of the growing interest in BRICS for the global economic landscape?

Answer: The growing interest in BRICS indicates a potential shift in the global economic landscape. As more countries join or express interest in BRICS, it could lead to a restructuring of global trade patterns, investment flows, and financial systems. This may result in decreased reliance on Western-dominated institutions and increased influence for emerging economies within the global economic order.

FAQ 7: How might the challenges posed to the US dollar by the China-Saudi Arabia agreement impact US economic interests?

Answer: The challenges posed to the US dollar by the China-Saudi Arabia agreement could impact US economic interests in several ways. It may lead to a decrease in the demand for US dollars for international transactions, potentially reducing the value of the dollar and negatively affecting US exports. Additionally, it could undermine the US’s ability to use the dollar as a tool for enforcing economic sanctions or exerting influence over other countries’ monetary policies.