BRICS expansion won’t disrupt Dollar. BNY Mellon in his note, Friday (1/9/2023) said that the United States (US) dollar is unlikely to lose its dominance as a global reserve currency in the near future, even though the BRICS is intensively expanding.
Domination of the dollar in the near future is considered unlikely even if the BRICS group undertakes expansion, which is considered to be a challenge for the dollar.
The BRICS, which includes Brazil, Russia, India, China and South Africa, is known to have invited Iran and Argentina, Saudi Arabia, the United Arab Emirates (UAE), Ethiopia and Egypt to the group, at a meeting last week in Johannesburg, South Africa.
BNY in the report said that one of the goals of the BRICS is to find an alternative to the dollar.
Then, the addition of Iran, UAE, Egypt and Saudi Arabia will make this group a heavyweight in energy exports especially for oil. This shows that there is a ‘basket’ of commodities in this group, namely gold and oil.
The expanded BRICS will account for 75 percent of the world’s manganese, 50 percent of the world’s graphite, 28 percent of the world’s nickel and 10 percent of copper. By adding Saudi Arabia, the UAE and Iran to the BRICS, it would include the world’s three largest oil exporters and produce 42 percent of global oil supply.
BRICS expansion won’t disrupt Dollar. But according to BNY Mellon, this will not be enough in the fight against the dominance of the dollar.