The fact that Indonesia recently joined the BRICS group highlighted the ongoing efforts and ambitions of member countries to create a competitor to G7 - the alliance of the world's strongest economies.
BRICS currently has 10 members (Brazil, Russia, India, China, South Africa, Egypt, Iran, UAE, Ethiopia and Indonesia), with a total economic scale equivalent to about 40% of the global economy.
According to Cyprus Mail, US President Donald Trump's fierce position is said to have the effects on the BRICS group. If the US leader performs a threat to impose taxes of up to 100% with BRICS countries because of their efforts to reduce the dependence on the US dollar, it will cause stressful outbreaks, causing instability for global trade and challenging challenges The bond of the BRICS group.
The tough stance of President Donald Trump administration, taking into account the dollar accounting for more than 70% of global trade transactions, is expected to lead to two scenarios.
First, BRICs promotes enhanced internal economic relations, efforts to shift from the dollar through the development of replacement financial systems, for example the BRICS Pay payment system.
Or, in the second scenario, BRICS weakened due to centrifugal trends from member states that believed that it would benefit more when applying US -friendly policies.
Although Russia and China - the two countries in the founding group BRICS - traded with the Ruble and the Yuan, but the creation of the common currency of BRICS is considered a very difficult task. The level of economic convergence and complex structure is enough to ensure the success of such a large project has not been achieved. This also shows the economic characteristics and different benefits of BRICS member countries.
In addition, the geopolitical context is also having changes, threats to impose taxes and sanctions if the conflict in Ukraine is not soon over, on the one hand can worsen Russian -US relations. , bringing Russia back to BRICS partners. On the other hand, the end of Russia - Ukraine conflict can create new motivation for trade cooperation between Russia and the US and the EU.
Regardless of the scenario, the east -west crack seems to be getting deeper and deeper at the time when the unpredictable economic and external policy of President Donald Trump is led to increasing instability.
In the middle, the ability to interrupt economic can strengthen the determination of BRICS on strengthening the inner economic cooperation and the effort to escape from the USD dependence.
Finally, the success of the BRICS in the future depends on the capabilities of the members in capturing opportunities when the world order is changing. This also depends on the possibility of BRICS members together solving challenges.
