Overview of BRICS and Recent Expansion
The BRICS economic bloc, initially comprising Brazil, Russia, India, China, and South Africa, expanded in January 2024 to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE). This expansion aims to bolster BRICS' influence in global economic affairs, now representing approximately 46% of the world’s population and significant shares of global GDP and trade (Banque de France, 2024; Forbes Africa, 2024). This strategic move challenges the dominance of Western-led institutions like the International Monetary Fund (IMF) and the World Bank.
The Proposed New Currency: "The Unit"
Objectives and Development
"The Unit" is an ambitious proposal by BRICS to create a common currency intended to facilitate trade among member countries and reduce reliance on the U.S. dollar. This currency is envisioned as both a digital and decentralized monetary system leveraging blockchain technology for enhanced transparency, security, and efficiency in cross-border transactions (Coindesk, 2023; Sputnik Africa, 2024). The development of "The Unit" has been supported by the BRICS New Development Bank (NDB), which has already started issuing loans in local currencies to reduce dependency on the U.S. dollar (The Exchange Africa, 2024; Genfinity, 2024).
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