BRICS Expansion on the Horizon: Global Economy Braces for Potential Dollar Decline

As the BRICS summit looms, South Africa, the host nation, has revealed that 23 countries are eager to join the powerful economic alliance, potentially threatening the dominance of the U.S. dollar on the global stage. Key countries, including Algeria, Argentina, and Bahrain, have shown interest in aligning with the BRICS bloc. Major leaders, such as China's Xi Jinping and India's Narendra Modi, will discuss this potential expansion during the summit, scheduled from August 22-24 in Johannesburg.

South Africa's Minister of International Relations and Cooperation, Naledi Pandor, stressed that the final decision on expanding the BRICS membership will lie with its leaders. South Africa’s own inclusion in the BRICS post its inception is a reminder of the bloc's evolving nature.

President Cyril Ramaphosa, supported by BRICS leaders, has also invited 67 global heads of state and 20 representatives from leading international organizations. Notably absent from the guest list is French President Emmanuel Macron.

Analyst Michael Roach from the Lowy Institute points to the possible decline of the U.S. dollar's global stronghold. With signs like Saudi Arabia contemplating trades in non-U.S. currencies and BRICS contemplating an "international reserve currency," the dominance of the dollar seems to be in question. Drawing parallels with the past decline of currencies like the Dutch guilder and British pound sterling, Roach suggests that the world may be on the cusp of a significant economic shift, with BRICS potentially at the helm.