The 15the BRICS summit ended on Thursday 24 August with great news. That of the creation of the BRICS+. An expanded version of the number of organization members. Members who count in their ranks, several of the largest crude suppliers in the world. Global geopolitics is potentially no longer the same.
The BRICS PLUS a strong strategic choice…?
The BRICS summit had its epilogue yesterday. One of the crucial points of this edition is the adhesion of a certain number of countries. A strategic choice that brings the members of the organization to 11 through the creation of what will now be called the BRICS +.
This terminology is perhaps no coincidence. Indeed, it has a certain analogy with OPEC+. It is the energy alliance of the members of the Organization of Exporting Countries (OPEC). In addition to other major non-OPEC oil producers.
BRICS + is like OPEC +, the 5 traditionally known member countries, in addition to 7 new member countries. These are Ethiopia, Argentina, Saudi Arabia, Egypt, Iran, United Arab Emirates (UAE).
We know that more than forty countries have applied to join the BRICS. But only the membership of these 7 countries is accepted for the moment. Is this a risky choice? It would be naive to think so when you know that these 7 new members have oil in common.
Indeed, Saudi Arabia, Egypt, Iran and the United Arab Emirates (UAE) are notoriously important oil countries. Ethiopia and Argentina do not have the same status, but are home to substantial oil resources.
… Who signs the death certificate of the petrodollar?
In light of this data, it seems that the projection regarding the end of the dollar is becoming clearer. This is factually verifiable. Indeed, a cross-analysis of data from Statista and by Wordometer reveals an interesting detail.
Thanks to their new members, the BRICS in their new version will practically control the bulk of the world’s crude production. In numerical terms, the BRICS+ will control at least 80% of global oil production.
This figure could reach 95% if a country like Nigeria, Africa’s leading producer of black gold, joins the organization. This perspective is not yet on the agenda. However, we are forced to note that the BRICS are making a big impact on the West.
Until now, the latter, led by the United States, ensured its hegemony thanks to the petrodollar system. A mechanism in which international oil transactions are primarily denominated and conducted in US dollars.
In other words, it is the use of the US dollar as the reference currency for the purchase and sale of oil on the world market. It is this system that ensures the dominance of the dollar, the American geopolitical influence and the economic power of the United States.
The development around the integration of oil-producing countries into the BRICS certainly signals the death of the American currency. American experts have the right to doubt it. But the exit of the dollar now seems inevitable. This is potentially good news for the crypto industry.
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