The BRICS bloc is ready to continue its expansion in 2024. Successfully inducting multiple new nations in January, the bloc is expected to invite more countries to join sometime this year. With more countries showing interest in BRICS and its missions, the United States and the European Union are facing a new developing threat.
BRICS is advancing at a rapid pace in its de-dollarization efforts by cutting ties with the US dollar. The new members have begun settling trade in local currencies by ending dependency on the greenback. Furthermore, India, China, Russia, and the UAE have started using their respective local currencies, reducing their reliance on the US dollar.
United States Voices Concerns Amidst BRICS Expansion
Multiple political/economic voices in the United have shared their concerns about the future of BRICS and its impact on the United States. As BRICS continues to grow, some are sure that its growth will pose an immediate threat.
US Politician Marco Rubio shared a warning to the US recently about BRICS, saying that its growth might interfere with the ability to exert sanctions on other nations. “If current trends continue, it will become harder and harder for the United States to prevent international violence and oppression through sanctions,” Rubio wrote in a recent op-ed article/open letter.
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How The Bloc Affects US and European Union-led SWIFT
Senator Rubio also gave a warning about how BRICS growth can affect the financial system SWIFT. Rubio says that the group’s expansion can enhance the “attractiveness as an alternative to the American and European-led financial system.”
Early this year, BRICS members Russia and Iran officially ended the SWIFT payment system for trade between themselves. Russia and Iran agreed to carry out transactions directly through banks and will settle trade in local currency and not the US dollar.
Also Read: BRICS: How to Buy Chinese Yuan (2024 Guide)
Moreover, as BRICS looks to invite more nations to join the bloc and work to ditch the US dollar, BRICS will not only strengthen its group but weaken the US dollar as one of the strongest currencies in the world. Since the greenback is utilized both in the US and Europe, a top currency being overshadowed may prove a threat to finances. The West overall is opposing the bloc, however, there are cracks in the system that could lead to BRICS becoming more of a global superpower.