The BRICS alliance is looking to create a new currency to settle international trade and dethrone the U.S. dollar from its global status. If the new BRICS currency gains the trust of other countries, the U.S. dollar could be the first to fall. The global financial power will shift from the West to the East creating a new world order. Saudi Arabia is one among the 19 countries that are looking to join the alliance and accept the new currency, reported Bloomberg.
If Saudi Arabia joins BRICS or trades with the yet-to-be-released currency, the U.S. could face severe implications.
BRICS: What Could Happen If Saudi Arabia Accepts the Currency?
Saudi Arabia’s membership would strengthen the economic power of the BRICS bloc. Saudi is among the world’s largest oil producers and exporters, and it possesses significant reserves of oil and natural gas. This could enhance the energy cooperation among BRICS members and potentially increase trade and investment opportunities within the group.
Saudi Arabia’s prominent role in the global energy markets could lead to closer collaboration in the energy sector among BRICS nations. It could facilitate discussions on energy policies, production levels, and pricing strategies. The development could put BRICS countries to enjoy a greater influence over global energy dynamics.
The move could potentially shift geopolitical alignments and power dynamics in Asia and the Middle East. Saudi’s participation in BRICS might alter its traditional alliances with other regional and global powers, such as the United States, and the European Union.
The inclusion of Saudi Arabia into BRICS could force the European Union to ditch the U.S. dollar and settle the oil and gas trade in the new currency. Therefore, Saudi Arabia joining or accepting the BRICS currency could tilt the global powers from the West to the East. The United States could no longer be the global leader giving way to the new financial order.