The BRICS coalition is looking into the possibility of developing a new currency in order to settle international trade and unseat the dollar as the preeminent currency in the world. The United States dollar might be the first currency to decline in value if other nations begin to place more trust in the new BRICS currency. A new world order will emerge as a result of a change in the balance of financial power away from the West and towards the East. One of the 19 countries that are interested in joining the alliance and adopting the new currency is Saudi Arabia is one of those countries. In the event that Saudi Arabia becomes a member of the BRICS or engages in commerce using the new currency, the United States may be subject to severe repercussions.
BRICS: What Are Some Possible Outcomes If Saudi Arabia Adopts the Currency?
The BRICS bloc’s ability to exert economic influence would be enhanced if Saudi Arabia were to become a member. In addition to being one of the leading producers and exporters of oil in the world, Saudi Arabia boasts huge reserves of both oil and natural gas. This might potentially boost the chances for commerce and investment among members of the BRICS group, as well as improve energy cooperation among the members of the group.
Because of Saudi Arabia’s major position in the global energy markets, BRICS members may decide to work more closely together in the energy sector. It might make it easier to have conversations about pricing tactics, output levels, and energy policy. This new trend has the potential to give the BRICS countries a stronger influence over the current state of the global energy market.
This decision has the ability to alter the power balances and geopolitical alignments in both Asia and the Middle East. It is possible that Saudi Arabia’s membership in BRICS will cause long standing alliances it has maintained with other regional and global powers, such as the United States and the European Union, to be reevaluated.
Because Saudi Arabia will now be a member of BRICS, it is possible that the European Union will be compelled to stop using the dollar and instead settle all oil and gas commerce in the new currency. Consequently, Saudi Arabia’s participation in or acceptance of the BRICS currency has the potential to shift the balance of global power away from the West and towards the East. It is no longer possible for the United States to hold the position of global leader as a result of the new financial order.
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