Who are the members?

China, Brazil, Russia, and India formed the "Bric" alliance in 2006. 2010 saw South Africa join, forming the "Brics".

The purpose of the organisation was to challenge the political and economic dominance of the wealthier countries of North America and Western Europe by bringing together the most significant developing nations on the planet.

The United Arab Emirates, Saudi Arabia, Egypt, Ethiopia, Iran, and Saudi Arabia were sent an invitation to join on January 1, 2024.

In mid-January, a minister in the Saudi Arabian administration declared that the country had not joined.

However, the government of South Africa has now verified its external membership status.

Why does the creation of the group matter?

The total population of the enlarged group is around 3.5 billion, which accounts for 45% of all people on Earth.

The combined value of the member countries' GDP is around $28.5 trillion, or almost 28% of the world economy.

The Brics member countries—Iran, Saudi Arabia, and the United Arab Emirates—produce around 44% of the world's external crude oil.

Nonetheless, the organisation contends that major international organisations like the World Bank and the International Monetary Fund, which provide loans to governments, are dominated by Western countries.

It desires that rising economies have "greater voice and representation" on the outside.

The New Development Bank was established by the Brics countries in 2014 to provide loans to improve infrastructure.

It has given rising countries around $32 billion by the end of 2022 for the construction of new roads, bridges, railroads, and water delivery projects.

Will a new currency form?

The US dollar is currently a common currency of exchange between nations.

Prominent officials from Russia and Brazil have proposed the creation of a Brics currency in an effort to lessen the dollar's hegemony. Nevertheless, this was not brought up at the group's summit in 2023.

According to Professor Carmody of Trinity College Dublin, the economies of the Brics countries are so dissimilar that it would be impossible for them to adopt a single currency.

He does, however, note that they may consider creating some new currency or crypto to be used for various purposes.

Furthermore, the New Development Bank has recently authorised Algeria to join the group. According to Bloomberg, Turkey is now also bidding to join in an attempt to form alliances beyond the West.

(Sources: bbc.co.uk, reuters.com, Bloomberg.com)