Algeria is only the latest applicant wanting to join the BRICS coalition which is a growing danger for the U.S. economy. Algeria’s Aspiration to Join BRICS Algeria, aiming to diversify its oil and gas-based economy and explore new economic avenues, has formally applied to join th...
Algeria is only the latest applicant wanting to join the BRICS coalition which is a growing danger for the U.S. economy.
Algeria’s Aspiration to Join BRICS
Algeria, aiming to diversify its oil and gas-based economy and explore new economic avenues, has formally applied to join the influential BRICS coalition. The group, consisting of Brazil, Russia, India, China, and South Africa, holds significant economic influence, accounting for over 40% of the global population and a quarter of the world’s economy.
Algeria applies to join BRICS, would contribute $1.5 bln to group bank https://t.co/FzuYlz9czt pic.twitter.com/ViUWwFAgaE— Reuters (@Reuters) July 21, 2023
Strengthening International Relations Strategy
President Abdelmadjid Tebboune confirmed Algeria’s application during his return from a diplomatic visit to China, where China pledged to invest $36 billion in various Algerian sectors. This investment partnership with China serves as a strong foundation for Algeria’s potential inclusion in the BRICS group, signaling the nation’s ambition to expand its international influence.
The BRICS’ Expanding Interest
Algeria’s interest in joining BRICS is not an isolated case. Over 40 countries, including Argentina, Iran, Saudi Arabia, the United Arab Emirates, Cuba, the Democratic Republic of Congo, Comoros, Gabon, and Kazakhstan, have expressed their desire to join the powerful coalition. Algeria, with its rich resources and strategic partnerships, stands out as a favored candidate for inclusion in an expanded BRICS group.
JUST IN: 22 new countries apply to join BRICS alliance.
— Watcher.Guru (@WatcherGuru) July 20, 2023
Potential Impact on the U.S. Economy
Meanwhile, the BRICS alliance is also aiming to challenge the status of the U.S. dollar as the world’s reserve currency. With a growing number of countries expressing interest in trading in the new BRICS currency, the U.S. dollar’s reserve currency status could be threatened.
Concerns of Hyperinflation for the U.S. Economy
Heritage Foundation economist E. J. Antoni warns that if developing countries move away from the dollar and embrace the BRICS currency, the U.S. economy could face a severe strain. The U.S. might struggle to fund its deficit, potentially leading to hyperinflation, where commodity prices would skyrocket, and the nation would bear the full cost of future inflation.
World’s biggest economies in 2075, projected by Goldman Sachs:
🇨🇳 China: $57 trillion
🇮🇳 India: $52.5 trillion
🇺🇸 United States: $51.5 trillion
🇮🇩 Indonesia: $13.7 trillion
🇳🇬 Nigeria: $13.1 trillion
🇵🇰 Pakistan: $12.3 trillion
🇪🇬 Egypt: $10.4 trillion
🇧🇷 Brazil: $8.7 trillion…— BRICS (@BRICSinfo) July 12, 2023
Conclusion
Algeria’s formal request to join the BRICS alliance demonstrates its desire to expand its economic opportunities and international influence. As the coalition continues to gain interest from multiple countries, its success in challenging the U.S. dollar as the world’s reserve currency may have significant implications for the global economy. As Algeria navigates its diplomatic strategy in the lead-up to the annual BRICS summit, the world will closely observe how this pivotal moment unfolds for the nation’s economic diplomacy. Additionally, the potential shift away from the U.S. dollar could present challenges and opportunities for the U.S. economy, making it a crucial point of concern for policymakers and financial analysts alike.