BRICS Summit 2024: Big Promises, Little Impact?
- Russia is hosting the BRICS summit, with expansion and alternative payment systems on the agenda, as Putin seeks to position the group as a counterweight to Western influence.
- Jim O’Neill, who coined the term “BRICs,” remains skeptical of the bloc’s impact, citing internal tensions between China and India and questioning the significance of new members like Egypt and Ethiopia.
Russia will host the BRICS summit in Kazan from October 22-24, where President Vladimir Putin will push for a new SWIFT-like payment system to challenge US dollar dominance.
For the exact date and time of these major economic events, import the BlackBull Markets Economic Calendar to receive alerts directly in your email inbox.
The group, comprising Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, Ethiopia, Iran, and the UAE, with further expansion on the table as nations like Thailand and Myanmar express interest in joining.
As we lead into the BRICS summit, the Dollar Index (DXY), may be “overstretched” according to DBS’ FX analyst Philip Wee, after appreciating more than 3% this month.
However, Jim O’Neill, the former UK treasury minister who coined the term “BRICS” back in 2001 remains skeptical about BRICS. He argues that while the summits generate media attention, they rarely produce meaningful outcomes. O’Neill also points to ongoing tensions between key members China and India that get in the way of the block’s aspirations.