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With the BRICS expanding its membership to officially declare the beginning of a \u201cNew World Order\u201d.<\/p>\n
The biggest surprise from the BRICS summit is that Saudi Arabia \u2013 the world\u2019s largest Crude Oil producer and Iran, which holds the world\u2019s second-largest Natural Gas reserves \u2013 have been invited to join the BRICS group of nations in its first expansion in over a decade.<\/p>\n<\/div>\n<\/div>\n
The BRICS bloc also agreed to admit the United Arab Emirates, Argentina, Egypt and Ethiopia to its ranks \u2013 added further fuel to the fire of \u201ca New World Order\u201d. And let\u2019s not forget a fresh impetus to the \u201cde-dollarization\u201d movement, which challenges the dominance of the U.S dollar as the world\u2019s reserve currency.<\/p>\n
The inclusion of these new countries, especially Saudi Arabia, the UAE and Iran doesn\u2019t just increase the size of BRICS, but also their overall supremacy in the global Commodities market. As it stands, the current five BRICS members \u2013 Brazil, Russia, India, China and South Africa account for approximately 52% of global Commodities supply across the metals, energies and agriculture<\/a>. The new composition, including Saudi Arabia, the UAE and Iran would almost double the BRICS market share \u2013 giving them control of nearly 80% of global Commodities output.<\/p>\n<\/div>\n<\/div>\n With most of the world\u2019s Commodity trade taking place in dollars, the expansion could also enhance the BRICS \u201cde-dollarization\u201d movement and drive more trade through alternative currencies.<\/p>\n For instance, Russia is now using the Chinese Yuan in place of the U.S dollar for international payments and the Yuan is now the most-traded currency in Russia. Elsewhere, Brazil and China are ditching the U.S dollar in favour of their own currencies.<\/p>\n While, the UAE has signed bilateral agreements with India that will see the two countries trade Crude Oil and other major Commodities in their local currencies \u2013 not the U.S dollar. Fellow Crude Oil and Natural Gas superpowers Saudi Arabia and Iran have also called for trade to be carried out in other currencies besides the U.S dollar.<\/p>\n All this is clearly chipping away at the dominance of the U.S dollar and the magnitude of this situation should not be underestimated.<\/p>\n According to BRICS officials, more than 40 countries have formally applied to join the group \u2013 hinted that the expansion is only just getting started!<\/p>\n As the BRICS group of nations continue to rapidly expand, so will the trend among their members of ditching the U.S. dollar in favour of doing business in alternative currencies.<\/p>\n When that happens, all of the countries that have had to hold dollars for the last 50 years, will no longer have a reason in holding them. But here\u2019s the interesting part \u2013 if all these countries start to dump dollars \u2013 that will send a tsunami of inflation hitting the shores of the West.<\/p>\n During the first half of this year, Google searches for the phrase \u201cHow To Trade Commodities\u201d surged to the highest level on record ever.<\/p>\n Once again, that trend is on the rise with Google searches for the exact phrase snatching headlines as the second-most searched term this month!<\/p>\nBRICS\u2019 Expansion Fuels De-Dollarization Shift in Global Commodities Trade<\/h2>\n
Dollar Dump Fears Rise Amid Surging Interest in Commodities Trade<\/h2>\n
Commodity Price Forecast<\/h2>\n