The president said that BRICS is in the process of becoming a big magnet for those who wish to belong to another world order based on peace and cooperation.
Venezuelan President Nicolas Maduro said on Monday that his country would like to join the BRICS organization as the bloc is in the process of forming a new world order.
“If they ask Venezuela whether we want to join the BRICS at some point — Venezuela says yes, we would like to be part of the BRICS and take part in the construction of this new architecture and global policy,” Maduro said at a press conference following his meeting with Brazilian President Luiz Inacio Lula da Silva.
The president added that BRICS is in the process of becoming a big magnet for those who wish to belong to another world order based on peace and cooperation.
BRICS members account for 30% of the global gross output and 40% of the global population. The bloc includes the world’s major developing countries: Brazil, Russia, India, China, and South Africa. It was also announced, recently, that a handful of medium-sized economies intend to join the bloc: Argentina, Algeria Iran, Indonesia, Turkey, Saudi Arabia, and Egypt.
In late March, China and Brazil struck a deal to ditch the US dollar in their bilateral transactions, which is expected to reduce investment costs and develop economic ties between the two countries.
During the same month, the yuan overtook the US dollar in China’s cross-border trade transactions, dealing a new major blow to the green note that is witnessing a global decline in its position as the top reserve currency.
Iraq’s central bank announced in February that it would allow commerce with China to be settled directly in yuan for the first time.
And in January, South African Foreign Minister Naledi Pandor said the BRICS club consisting of Brazil, Russia, India, China, and South Africa seeks to discover a way of bypassing the dollar to create a fairer payment system that would not be skewed toward wealthy countries.
The BRICS have recently agreed to create their own currency. However, details have not been disclosed yet as members are expected to participate and share their ideas on the matter in a forthcoming session of the BRICS summit in August 2017.
On May 16, Maduro announced that his country will move forward on the path of abandoning the dollar in economic transactions.
Speaking to local media, Maduro said, “This is the path of Venezuela and the path of a free economy where currencies are not used to punish countries and impose sanctions.”
Record inflation in the West has pushed countries around the world to find alternatives to the US dollar and its financial institutions, in an indication of the yuan’s rising international significance.
Source: Almayadeen
