The BRICS bank commonly called the ‘New Development Bank’ (NDB) confirmed that it has started reviewing applications from countries that have formally applied to join the alliance. The head of NDB, Dilma Rousseff, said that the bank is reviewing applications sent from 15 countries. However, she did not name the applicant countries but confirmed that BRICS’ priority is to diversify the geographical location.
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Rousseff’s statements hint that the BRICS bloc is looking to induct countries from all corners of the world. NDB might not specifically stick to one location or continent and aims to be a diverse group after expansion. BRICS is an acronym for Brazil, Russia, India, China, and South Africa.
BRICS: 5 New Countries Might Get Approval To Join the Alliance
Speculation is rife that the NDB might approve five countries to join BRICS and could announce the induction this month. There are hints that Saudi Arabia and the United Arab Emirates (UAE) are among the five countries to be approved. The NDB and Saudi Arabia held funding discussions in July as the bank needed to raise fresh funds.
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If the deal goes through, Saudi Arabia could be the main source of funding and boost the NDB’s financial prospects. The BRICS bank needs funding as lending in the U.S. dollar dried up due to the sanctions placed against Russia. Therefore, Saudi Arabia could be the key to its revival and provide a new pathway in the global lending markets.
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In addition, both Saudi Arabia and the UAE are top oil-producing countries and export millions of barrels every year. If BRICS begins to ditch the U.S. dollar for oil trade and settle payments in local currencies, the greenback will be on the path of decline. Read here to know how many sectors in the U.S. could be affected if BRICS ends its reliance on the dollar.
