Thailand announced its intention to join the BRICS economical block, which could accelerate the fall of the US dollar.
According to Thai government spokesperson Chai Wacharonke, who said in a message that the Bangkok government gave green light to official letter of intent.
Chai reported that Thailand highlighted in its list the importance of multipolarity and the increasing function that developing countries specified as Thailand play internationally. The country believes that its imagination of the future is in line with the BRICS principles.
Thailand has besides identified respective ways in which they think it would be beneficial to join BRICS, including the chance to participate in the improvement of a fresh planet order and to take a more global role. If approved, Thailand will First associate of BRICS from Southeast Asia.
Thailand is only 1 of the fewer non-EU countries invited to participate in the October BRICS Summit in order to possibly join the coalition. According to Chai, their presence there may velocity up their application.
BRICS originally consisted of Brazil, Russia, India, China and South Africa. At the beginning of this year, Ethiopia, Iran, the United arabian Emirates and Egypt joined them. another countries that have expressed their desire to join include Venezuela, Senegal, Pakistan, Belarus, Cuba, Bahrain and Kazakhstan.
Is the dollar out?
Joining Thailand would strengthen the expanding financial strength of BRICS and its drive to decision distant from the dollar. The coalition is considered to be a competitor in global order, presently led by the developed economies of Europe and the United States. The late expanded block now represents about 30% of the planet economy, as well as a 3.5 billion population, or 45% of the planet population. Most importantly, it accounts for over 40% of global oil production.
The BRICS countries are working to make a single currency that will enable them to reduce dependence on the US dollar, which could lead to a shock in the current global economical power hierarchy.
With its own single currency, BRICS countries would be able to trade without US dollars, reducing supply and request for the dollar and possibly weakening its value.
Furthermore, this would weaken the current position of the dollar as the main reserve currency in planet trade. Today, many countries keep dollar reserves to guarantee economical stability; they could search to diversify their reserves in the presence of an alternate BRICS currency, which would further weaken the dominance of the dollar and its impact on the global arena.
At the same time, the common currency could enable BRICS countries to strengthen their own local currencies, challenging the dollar in the currency markets.
The BRICS countries are besides trying to decision distant from the dollar to reduce the impact of financial sanctions on the part of the West, as has happened late erstwhile SWIFT's western financial strategy cut Russia off after its actions in Ukraine in 2022. Almost half of all Russian abroad reserves were frozen. In the same year, the United States limited exports of semiconductor technologies to China.
Shirley Ze Yu, elder worker of London School of Economics, said Al Jazeera: "As the United States uses the dollar as a weapon under sanctions imposed on Russia and Iran, the desire of another developing countries to look for alternate currencies for trade, investment and reserves as well as make alternate multilateral settlement systems outside SWIFT is growing".
As BRICS expands, it is only a substance of time before The dollar will be thrown from the throne.
Translated by Google Translator
