The BRICS boys lately invited six new international locations to hitch them in 2024. Out of those six, 4 international locations—UAE, Egypt, Iran, and Ethiopia—have accepted the invitation. Argentina stated no, and Saudi Arabia remains to be deciding.
China and Russia are pushing for this growth to make BRICS stronger financially and to tackle the US and its Western allies. However not everybody in BRICS is on board with this plan.
India, South Africa, and Brazil aren’t too completely happy in regards to the quick growth. They need to sluggish issues down and let the brand new members settle in first. They fear that if too many international locations be part of directly, it might mess up insurance policies and commerce offers.
U.S. President Joe Biden and Indian Prime Minister Narendra Modi. Credit: CNBC
India is very skeptical of China’s intentions. They suppose China is utilizing BRICS to push its personal agenda of world dominance.
India additionally believes Russia is attempting to make use of BRICS to get again on the US for the sanctions on its economic system. In India’s view, the 2024 growth is only a cowl for China and Russia’s greater plans.
“India needs BRICS to maintain its unique spirit of equal partnership,” a supply stated. India is suggesting a five-year hole earlier than letting extra international locations in. They argue this time is required to get the whole lot working easily with the brand new members.
This level has been introduced up in current conferences of senior officers and sherpas. Whereas these debates are taking place, the monetary scenario isn’t wanting all that nice.
Prime Minister Narendra Modi with President Vladimir Putin
The US greenback has been beating up on the Indian rupee lately. The rupee hit a low of 83.63 in June 2024, recovered a bit, however then fell again to 83.62.
This isn’t simply a problem for the rupee. The greenback has been outperforming 22 out of 23 main Asian currencies this month. Solely the Hong Kong greenback has managed to carry its floor.
The Chinese language yuan has dropped to its lowest since December 2023, and the Japanese yen has hit its weakest level for the reason that Nineteen Nineties. Overseas institutional buyers (FIIs) have additionally contributed to the rupee’s fall.
Earlier this month, they pulled out $2.6 billion from the Indian inventory market. This large outflow added strain on the rupee, inflicting it to drop additional towards the greenback.