BRICS continues to expand its influence by inviting Venezuela to its 16th summit in October 2024. The alliance is actively promoting de-dollarization, which could seriously change the global economic order and harm US interests.
The BRICS Alliance has extended its first invitation to Venezuela to participate in the 16th summit in October 2024. The summit will be held in Kazan from October 22 to 24. The President of Venezuela Nicolas Maduro has received an invitation and will attend the upcoming summit. We wrote an article about his close interaction with BRICS here.
Venezuela has expressed interest in joining the BRICS alliance in 2024. The South American country has officially submitted its application to join the group.
The decision to admit new countries is made by consensus of the existing nine members of the alliance. It is only an invitation to attend the BRICS summit, not admission to the bloc. “As the Chairman of BRICS, President Vladimir Putin invites President Nicolas Maduro to attend the BRICS+ summit,” the invitation reads.
What will happen at the BRICS summit in October 2024
The BRICS summit in October will determine the alliance's prospects for the coming years. The bloc will discuss the creation of a new currency and consider ways to end its dependence on the US dollar. The group will also agree to bring in new countries to strengthen their trade policies.
The alliance will extend many more invitations to developing countries to attend the BRICS summit in October. This event will make developing economies believe that a world without the dominance of the US dollar is possible. The bloc will also convince developing countries to put their local currencies forward and end their dependence on the US dollar. The next few decades will be challenging for the dollar and the US economy as de-dollarization rapidly accelerates around the world.
Some statistics for 2023 and the current year on de-dollarization in BRICS and beyond
In 2023, the BRICS countries dumped $122.7 billion in US Treasuries and are abstaining from government debt. BRICS member Brazil followed suit and cut its holdings of U.S. Treasuries from $227.4 billion in June to $224.7 billion in July, a decline of $2.7 billionAnother BRICS member, India, has followed a similar path and reduced its assets by $2.3 billion for the same period.
After BRICS, Japan dumps US bonds to cushion losses. Latest data shows Japan sold US and European sovereign bonds worth $63 billion by March 2024. The sale of US bonds accounts for almost a sixth of the Bank of Japan's portfolio. Subsequent events (August 5, 2024) showed that her actions were correct.
In the past seven months alone, BRICS member China has sold US Treasuries worth $72 billionThe BRICS alliance is also leading the de-dollarization movement, calling on developing countries to end their dependence on the dollar.
Author's opinion: Against the backdrop of Japan's active selling of US securities until March 2024 and the subsequent collapse of its index on August 5, it is difficult not to notice a strange coincidence. This once again underlines how closely global economic interests are intertwined.
If resource-rich Venezuela were to join BRICS and stop selling oil quotas to American companies, the consequences could be catastrophic for the United States. Its refineries, designed to process Venezuela’s heavy crude, would be left without a major source of raw materials, which would have a serious impact on the economy. While BRICS is actively developing financial services and striving for de-dollarization, the fight for real resources remains a key front. It is access to natural resources that will become the decisive factor in reformatting the global economic order.
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