The BRICS alliance, comprising Brazil, Russia, India, China, and South Africa, has solidified its position as a global powerhouse by controlling a staggering 80% of the world’s oil reserves.
This immense control over energy resources not only amplifies the influence of these nations but also signals a seismic shift in the dynamics of the international oil market.
With the recent announcement of inviting six new oil-producing countries, including Saudi Arabia and Iran, to join the alliance, the BRICS nations are solidifying their dominance and paving the way for a new global financial system.
Expanding the BRICS Alliance:
South African President Cyril Ramaphosa made a momentous announcement during a summit in Johannesburg, declaring the inclusion of six major oil-producing countries into the BRICS alliance.
Argentina, Egypt, Iran, Ethiopia, Saudi Arabia, and the United Arab Emirates have been invited, further consolidating the already formidable strength of the group.
This expansion is expected to transform the global oil market’s dynamics, as these countries, armed with significant oil reserves, bring their expertise, resources, and influence to the table.
Creating a Parallel Financial System:
Beyond its sheer dominance in oil reserves, the BRICS alliance is taking strategic steps to establish a parallel financial system that would challenge the supremacy of the G7 and the World Bank.
With plans underway to develop a single currency for international trade and Russia’s imminent announcement of a new payment system to rival SWIFT, the BRICS nations are positioning themselves as key players in reshaping the global financial landscape. Additionally, the BRICS bank, which will provide loans in the currencies of its member states, further strengthens their ability to conduct mutual trade in their national currencies, reducing reliance on traditional global financial institutions.
Brazil’s Support for Inclusion of African Union:
Former Brazilian President Luiz Inacio Lula da Silva, popularly known as Lula, expressed support for including the African Union in the Group of 20 (G20) nations. Lula conveyed this unanimous endorsement during a news conference in Johannesburg, representing the collective stance of the BRICS countries.
This move highlights the BRICS nations’ commitment to fostering stronger ties, collaborations, and inclusivity on the African continent, leveraging its abundant resources and potential to drive global economic growth.
With control over 80% of the world’s oil reserves, the BRICS alliance comprising Brazil, Russia, India, China, and South Africa has emerged as a formidable force on the global stage. The recent invitation extended to six major oil-producing countries, including Saudi Arabia and Iran, reinforces their dominance in the energy sector and signals a transformative shift in the global oil market.
Moreover, the BRICS nations’ proactive push to establish a parallel financial system and their support for broader inclusivity within the G20 demonstrate their commitment to reshaping the world order. As the BRICS alliance continues to strengthen its influence and reshape global dynamics, vigilance and cooperation from other nations will be crucial to ensure a balanced and equitable global economy.