There is a lot of discord within BRICS. The lack of a unified opinion on de-dollarization is noticeably spoiling the overall picture of unity. While some organization representatives are cheerfully reporting on abandoning the dollar, the majority of the member countries are openly calling it a stupid idea.
The BRICS’ combat against the US dollar was doomed from the very start. India said that it was not ready for such a trick and did not see any sense in it. Meanwhile, China supported the idea just by words, continuing to use the greenback in its international settlements. Africa will never abandon the greenback. Independent analysts suppose that the announcement of the de-dollarization is just populism aimed at affecting the mindset of people in such countries as Russia, Iran, and North Korea. Notably, only Russia is a member of BRICS at present. In this light, even a larger number of member countries will hardly affect the US dollar.
Former Executive Director of the World Bank Group Rogerio Studart is sure that the expansion of BRICS does not aim to topple the dollar from its position as the dominant world currency. The key goal is to promote trade and remove barriers for developing countries.
Notably, after the BRICS summit in Johannesburg, leaders decided to invite Argentina, Egypt, Iran, Ethiopia, the United Arab Emirates, and Saudi Arabia to become full members of the alliance. According to Rogerio Studart, Argentina needs the inflow of the US dollar because of its debt burden. Thus, the solution is to reach an agreement that allows Argentina or any developing country to boost trade, create jobs, and attract investment without resorting to a scarce and controlling currency.
