BRICS Expansion and De-Dollarization Efforts Challenge US and EU Economic Dominance

The BRICS bloc, comprising Brazil, Russia, India, China, and South Africa, is on a notable path of expansion and de-dollarization, raising concerns for the United States and the European Union. After welcoming several new members in January 2024, BRICS plans to extend further invitations within the year, signaling its growing influence and appeal. This expansion is part of a broader strategy to reduce dependency on the US dollar, with the bloc and its new members moving towards settling trades using their local currencies. Such moves are indicative of BRICS’s commitment to de-dollarization, demonstrated by India, China, Russia, and the UAE’s shift away from the greenback in their transactions. This evolving dynamic presents a potential challenge to the dominance of the US dollar in global trade and could reshape international economic relations.