In a world where economic stability and global markets are constantly evolving, the BRICS nations are making significant strides towards reshaping the global financial landscape. During their 15th annual summit, held recently, discussions on de-dollarization and the creation of a new currency took center stage.
The BRICS bloc, consisting of Brazil, Russia, India, China, and South Africa, has long been seen as a rising force in the global economy. As of March 2023, they collectively represent a substantial 31.5% of the world's GDP. However, their ambitions don't stop there.
In a historic expansion move, the BRICS welcomed six new member countries into their fold. This expansion aims to bolster the bloc's influence and capabilities, giving it more weight on the global stage.
One of the most significant aspects of this expansion is the concerted effort to reduce dependence on the U.S. dollar. The BRICS nations are exploring new currency arrangements that could potentially lessen their reliance on the dollar-dominated global financial system. This shift signifies a move towards a multipolar world economy, one where the influence of the United States is not as predominant.
But can the BRICS nations truly reshape the world's economic landscape? To gain a better understanding of the situation, Africanews spoke with Mr. Jean Joseph Boillot, an economist and advisor on emerging countries at IRIS. He shed light on the BRICS+ initiative, stating that it has the potential to bring about substantial changes in the global economic order.
Coup in oil-rich Gabon: What implications for global supply?
In a separate development, the recent coup d'état in Gabon, an oil-rich nation in Central Africa, has brought political instability to the doorstep of the Organization of Petroleum Exporting Countries (OPEC). This raises concerns about potential disruptions in global oil supply, as Gabon is an OPEC member. The implications of this coup on the global oil industry remain uncertain, but it is a situation worth monitoring closely.
Nigerian firms grapple with high energy costs and exchange rates
In Nigeria, a different set of economic challenges is unfolding. President Bola Tinubu's economic reforms have led to high energy costs and a weakening local currency. The discontinuation of government subsidies on petrol and the unification of exchange rates have had a negative impact on Nigerian firms. Business owners find themselves navigating a difficult terrain, trying to adapt to these economic changes while seeking ways to remain competitive.