BRICS expansion and the push to trade beyond the dollar
Tap a highlighted term — or any word — for a quick explanation.
BRICS began as an informal club of Brazil, Russia, India, China and South Africa, and in 2024 it widened to include countries such as Egypt, Ethiopia, Iran and the UAE. The expanded bloc now represents nearly half the world's population and a rising share of global output, giving the developing world a louder collective voice.
A recurring theme at recent summits has been de-dollarisation — reducing dependence on the US dollar for trade and reserves. Members have discussed settling more of their commerce in local currencies and strengthening the group's own New Development Bank, though a single BRICS currency remains a distant idea rather than a concrete plan.
India's position is deliberately measured. New Delhi welcomes practical steps like local-currency trade that lower costs, but it resists framing BRICS as an anti-Western alliance. The dollar's role as the world's main reserve currency, built on deep and trusted financial markets, is not easily displaced.
Why it matters
BRICS is a recurring GS2 theme (groupings and agreements involving India). It tests India's balancing act between the West and the Global South, and connects to GS3 economy topics like reserve currencies and trade settlement. Expect questions on members, the New Development Bank, and the realism of de-dollarisation.
Test yourself
1. Which country joined BRICS in its 2024 expansion?
2. De-dollarisation refers to:
3. The development bank associated with BRICS is the:
4. India's approach to BRICS is best described as:
Your notes
Source: explainme.today