Morocco is now vying for a spot in the BRICS economic alliance, formally submitting a request for membership ahead of the much-anticipated summit next week. As the bloc continues expanding, Morocco hopes to join other contenders like Saudi Arabia, Indonesia, and Egypt to gain membership.

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BRICS summit: expanding the economic bloc

BRICS, the economic coalition of Brazil, Russia, India, China, and South Africa, has grown in recent months. The forthcoming summit will bring together around 60 heads of state to set expansionary standards for possible new BRICS members. However, the final decision on which countries will join will likely be deferred.

JUST IN: 🇲🇦 Morocco officially submits application to join BRICS.

— BRICS (@BRICSinfo) August 15, 2023

With its sustained interest in BRICS, Morocco is poised to join the growing list of nations seeking membership. However, it faces competition from other candidates, and the outcome of its request will depend on the criteria set forth at the upcoming summit.

Currency promotion, not de-dollarization

Contrary to speculation, the summit will not prioritize de-dollarization, despite BRICS countries’ recent moves away from the US dollar. South Africa’s BRICS Ambassador, Anil Sooklal, has clarified that the focus will be on promoting local currencies within the bloc.

“Trading in local currencies is clearly on the agenda,” Sooklal told Bloomberg in an interview. “There is no de-dollarization agenda item on the BRICS agenda.” The dollar will remain a prominent global currency; that is a given.”

Sooklal emphasized that BRICS is not a counter to the West or the G7, as some narratives suggest. Instead, the alliance aims to “advance the agenda of the Global South and build a more inclusive, representative, just, and fair global architecture.”

As reported by CoinGape, rich dad poor dad author Robert Kiyosaki predicted that a common BRICS currency will be end of US dollar as global reserve.

Expansion and currency development

The forthcoming meeting, set to take place in Johannesburg from August 22-24, will likely discuss the bloc’s enlargement and the setting up of a unified payment system. The August 22-24 Johannesburg conference is anticipated to focus on bloc enlargement and a uniform payments system. As negotiations continue, a technical committee may contemplate a shared currency, a long-term goal.

More than 42% of the world’s population, 23% of GDP, and 18% of trade are BRICS, founded in 2009-10. However, the union has yet to fully fulfill its geopolitical dominance and economic might. The summit will likely be critical in establishing a more comprehensive and balanced global architecture.

The alliance’s economic reach is evident, with BRICS members striving to conduct more trade in their currencies to gain global influence and counterbalance US dominance. The New Development Bank, established by BRICS, aims for a third of its lending to be in domestic currencies by 2026.

BRICS’s upcoming summit holds promise for the future expansion of the alliance and the strengthening of local currencies. As Morocco awaits the decision on its membership request, the world looks on with interest at the summit’s potential outcomes.

Sunil is a serial entrepreneur and has been working in blockchain and cryptocurrency space for 2 years now. Previously he co-founded Govt. of India supported startup InThinks and is currently Chief Editor at Coingape and CEO at SquadX, a fintech startup. He has published more than 100 articles on cryptocurrency and blockchain and has assisted a number of ICO’s in their success. He has co-designed blockchain development industrial training and has hosted many interviews in past. Follow him on Twitter at @sharmasunil8114 and reach out to him at sunil (at) coingape.com

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