BRICS – NEED AND OPPORTUNITIES

Abstract

BRIC came to light in a 2009 report by Goldman Sachs, one of the oldest investment banks in the world, founded in 1869 in the United States, looking at opportunities for economic development and growth in Brazil, Russia, India and China, as an acronym of the first letters of those countries. In 2010 South Africa joins them and BRICS is obtained. This union, group or bloc represents over 40% of the world's population and over 25% of the world economy. For about a month, BRICS has embarked on a new course of development, accepting as new members Saudi Arabia, the UAE, Iran, Egypt, Argentina and Ethiopia, thus forming a solid and powerful economic grouping that may soon oppose G- 7, and has a serious request to regroup the world economy. Goldman Sachs predicts that by 2032, the total growth of the BRICS economy will exceed the growth of the world's richest countries from the G-7, and according to Russian estimates, the BRICS contribution to the total world economic growth already exceeds 50% and is the largest consumer market with a population of about 2.8 billion.The BRICS group has set out to use local currencies in global trade to reduce its dependence on the US dollar, thus supporting its individual economies. In particular, the Chinese yuan and the Indian rupee were accepted for cross-border transactions, reducing dependence on the US dollar. It also calls into question the security of the dollar, which with further expansion of BRICS will lead to serious losses for the US currency, as well as a decrease in its influence on a global scale, which already seriously worries the US and threatens its economic and global dominance.