Trade among BRICS Nations to Hit $500 Billion in 2024: Report

The trade deals launched by BRICS are now putting the alliance on the global map for the sheer scale of the cross-border transactions.

According to new data from the World Bank, trade between BRICS nations (Brazil, Russia, India, China and South Africa) is headed to reach $500 billion in 2024. While the value falls much below the average global trade, BRICS’ numbers are slowly yet steadily rising. The alliance is creating a foundation that could later turn into full-fledged trade agreements strengthening their native economies, according to watcher.guru.com. 

The important weapon that BRICS is currently hiding under their sleeves is the de-dollarization initiative. The bloc first plans to strengthen the trade agreements and help it grow in the coming few years. Once the stage is set, BRICS could put their de-dollarization initiative to work and begin to settle trade in local currencies.

The overall idea of BRICS is to eventually cut ties with the US dollar and make local currencies thrive. The larger the trade numbers rise between BRICS, the bigger the threat grows to the US dollar. BRICS members China and Russia are aggressive in their de-dollarization efforts and are taking every step to make it a reality.

BRICS inducted five oil-producing countries in August this year during the 15th summit in Johannesburg. The oil-exporting nations to join BRICS in 2024 are Saudi Arabia, the UAE, Egypt, Iran, and Ethiopia.

If BRICS makes other developing to pay local currencies to settle oil payments, the US dollar will be the hardest hit.