What would occur if Saudi Arabia accepted BRICS money?
The BRICS coalition wants to establish a new currency to settle international trade and unseat the U.S. dollar as the dominant reserve currency. The U.S. dollar might drop first if other nations start to trust the new BRICS currency. A new world order will be created as the East will overtake the West in terms of financial power. According to Bloomberg, Saudi Arabia is one of the 19 nations attempting to embrace the new currency and join the alliance.
Saudi Arabia might have a significant impact on the U.S. if it joins BRICS or engages in trade using the unreleased currency.
If Saudi Arabia accepts the currency, what might happen?
Saudi Arabia's inclusion would increase the BRICS bloc's economic clout. Saudi Arabia is one of the biggest producers and exporters of oil in the world, and it has large oil and natural gas reserves. As a result, there may be more chances for trade and investment among the BRICS nations and their energy cooperation may improve.
Due to Saudi Arabia's significant influence on the world energy markets, BRICS countries may work together more closely in the energy industry. It might make it easier to have conversations about energy policies, output levels, and pricing plans. The change may give the BRICS nations more sway over the dynamics of the world's energy supply.
The action may alter the geopolitical dynamics of power in Asia and the Middle East. Saudi Arabia's inclusion in the BRICS could change its long-standing partnerships with other regional and international powers including the US and the EU.
The European Union might be forced to abandon the U.S. dollar and settle the oil and gas trade in the new currency if Saudi Arabia is admitted to the BRICS. Thus, Saudi Arabia's adoption of the BRICS currency or membership therein might tip the balance of world power from the West to the East. The new financial system would have to take precedence over the United States as the world leader.