BRICS

• 19 nations including Saudi Arabia, UAE, Algeria, Egypt, Bahrain, and Iran have expressed interest in joining the emerging-markets bloc of BRICS (Brazil, Russia, India, China, and South Africa).
• BRICS will hold its annual summit in Cape Town during the first week of June.

Other developments

• BRICS is planning to launch its own “new currency” system, a major step towards de-dollarization.
  • De-dollarization refers to the process wherein countries tend to reduce their reliance on US dollar (USD) as a reserve currency, medium of exchange, and also a unit of account.
  • It entails a mix of macroeconomic and microeconomic policies to enhance the attractiveness of the local currency in economic transactions.
• As per estimates, by 2028, BRICS is expected to make up 35 percent of global economy.

About BRICS

• The group was formalised in 2006 during the 1st meeting of BRIC (Brazil, Russia, India, and China) Foreign Ministers on margins of United Nations General Assembly (UNGA).
  • South Africa joined it in 2010.
• HQ- Shanghai, China
• It deliberates on important issues under three pillars of political and security, economic and financial, and cultural and people to people exchanges.
• Objective: Promote peace, security, development and cooperation; establish a more equitable and fair world.
• It comprises 41% of world population, having 24% of world GDP and over 16% share in world trade.
• It also established New Development Bank.