The US dollar is facing a new emerging threat as the BRICS group (Brazil, Russia, India, China, and South Africa) is seeking to add more countries and create an imposing force on the United States’ financial security. Mexico is now rumored to be interested in joining the coalition, according to a new report.
The BRICS countries are recognized for their significant influence in regional and global affairs, and they represent about 41% of the world’s population, 24% of the world’s GDP, and 16% of the world’s trade.
They have established a number of institutions to promote their cooperation, including the New Development Bank (NDB), formerly known as the BRICS Development Bank, which provides funding for infrastructure and sustainable development projects in member countries and other emerging economies.
Mexico’s move comes amid growing tensions with its northern neighbor, the United States, over issues such as immigration, border security, trade and human rights. The US has imposed tariffs on Mexican goods, threatened to cut off aid and demanded that Mexico do more to stop the flow of migrants from Central America. Mexico has also faced criticism from the US for its handling of the Covid-19 pandemic and its alleged interference in the Venezuelan crisis.
Mexico sees the BRICS as an alternative platform to diversify its foreign relations and increase its global influence. Mexico is the second-largest economy in Latin America after Brazil and has a population of more than 120 million people. It also has a strong manufacturing sector that competes with China in some markets. Mexico has already established close ties with China, which is its second-largest trading partner after the US. Mexico has also participated in several BRICS summits as an observer and guest.
However, Mexico’s bid to join the BRICS faces some challenges and uncertainties. The BRICS group has not formally announced any criteria or process for admitting new members, although Russia has suggested that it could expand by five countries in 2023. The BRICS also have different interests and agendas that may not always align with Mexico’s.
In 2021, the global gross domestic product per capita was around 12,232 USD. Meanwhile, Mexico’s GDP per capita was 10,046 USD, totaling to 1.273 trillion USD for the entire country. As a result, Mexico is considered one of the world’s major economies and is presently ranked 15th.
Last week it was said that the BRICS alliance plans on developing a new global currency to reduce dependence on the US dollar. The move towards a new currency is seen as a step towards a multipolar world that is endorsed by many of America’s foes. A shift towards a new global currency could challenge the dominance of the US dollar, leading to significant changes in the global financial landscape and limiting the US’s ability to exert economic pressure on other countries. The Biden administration will need to adapt to these changes and find new ways to maintain its economic influence and geopolitical power in this new multipolar world.
The BRICS countries have been holding annual summits since 2009 to discuss issues of common concern and promote cooperation on economic, political, and social matters. The group aims to enhance their collective economic growth and increase their influence in global governance. They also support each other’s bid for permanent membership in the United Nations Security Council.