SAUDI ARABIA JOINS BRICS AUGUST 22nd

BRICS Summit 2023

A significant event taking place on August 22 that has the potential to reshape the global geopolitical landscape and impact the status of the US dollar and gold prices. Saudi Arabia, a key player in the world economy, is set

to join the BRICS nations, consisting of Brazil, Russia, India, China, and South Africa, at the BRICS Summit, marking a momentous step towards dedollarization. This decision to align with the BRICS nations – is lighting a fire under the previously simmering downfall of the petrodollar. This critical geopolitical move has the potential to fundamentally reshape the world's financial landscape. Historically, Saudi Arabia has been a firm supporter of the petrodollar system, where global oil transactions are conducted in U.S. dollars. So, its pivot towards the BRICS nations signifies a powerful shift away from the U.S. dollar-dominated global economy. This development carries implications not only for the existing global financial order but also for the possibility of introducing a possible new gold-backed digital currency. The BRICS economic bloc has invited 69 leaders to its upcoming summit, including all African heads of state and the political heads of major Global South bodies. More than 40 countries have expressed interest to join the BRICS group, with 22 nations already having submitted official applications. “We’ve never had such a large outreach,” said South Africa’s diplomat in charge of BRICS relations. The BRICS nations have been actively working towards reducing their reliance on the US dollar in international transactions. By joining forces with these influential emerging economies, Saudi Arabia's participation adds considerable weight to the dedollarization movement. This move signifies a significant shift in the global balance of power and has the potential to challenge the long-standing dominance of the US dollar as the world's reserve currency. Approximately 85% of the world's population could potentially abandon the greenback.