No new countries will join BRICS says Putin as Saudi Arabia officially declines at summit

Brickworld.com reported:
The BRICS countries have decided not to allow any new countries to become formal members this year. Russian President Vladimir Putin made it clear in a speech at the summit held in Kazan that the current list of nine formal members is sufficient, at least for now.
Is there anything surprising about this? Despite all the hype and earlier invitations, Saudi Arabia has formally rejected the proposal and has not even signed an agreement to become a partner country. Whether this will affect the close friendship between Putin and Saudi Arabia’s Mohammed bin Salman remains to be seen.
BRICS Membership
Thirteen new countries, including Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam, are welcomed as official partners of the BRICS countries. They have a seat at the negotiating table but are not formal member countries. These countries are committed to becoming potential future members.
Is Saudi Arabia not on the official member and partner list? This is what everyone is talking about. Despite expansion negotiations taking place in August 2023, Riyadh’s priorities seem to lie elsewhere as the Middle Eastern powerhouse has not signed any agreements.
But the BRICS countries won’t wait for anyone. They have enough momentum with the countries that have already joined, especially with the latest additions of Iran, Egypt, Ethiopia, and the United Arab Emirates, joining the initial five countries: Brazil, Russia, India, China, and South Africa.
This summit is not just an opportunity for these countries to take photos and shake hands. The focus is on money. The BRICS countries are aggressively pushing for an alternative payment system that can bypass Western-controlled networks like SWIFT.
Russia has been excluded from SWIFT since its invasion of Ukraine, and now Putin is doubling down on supporting the establishment of a new cross-border payment system among the BRICS countries that allows settlements in local currencies.
While Putin is playing the long game, this is also a diplomatic move. Despite being a NATO member, Turkish President Recep Tayyip Erdogan attended the meeting. He has long been interested in getting Turkey involved in the BRICS countries. Even UN Secretary-General Antonio Guterres was present.
BRICS countries follow their own rules in the banking industry
So, what is the outcome here? The BRICS countries have been in existence since 2006, but progress has been slow. The New Development Bank (NDB) established by the BRICS countries is expected to provide around $5 billion in loans this year.
Yes, compared to the World Bank’s $72.8 billion, this is just a small portion, but the momentum is there. While the US dollar won’t disappear tomorrow, more and more countries see the BRICS countries as an insurance policy. They see a world where Western rules do not dominate.
But as the BRICS countries grow larger, tensions between member states’ national interests intensify. When you have countries like China and India, it’s difficult to get everyone to agree because they are not the best of friends.
The BRICS countries currently account for one-fifth of global trade. But does this mean they will overthrow the US dollar? Not anytime soon.
Certainly, Putin is considering establishing a new payment system, but don’t expect the US dollar to disappear from the global financial system because of some new initiatives. The United States remains the most powerful country on Earth.
IMF Concerned about the BRICS Countries
The International Monetary Fund (IMF) is paying attention. Managing Director Kristalina Georgieva wants to learn more. She says the idea is not new, but the details are crucial. “We need more information to truly assess what is happening here.”
The BRICS Cross-Border Payments Initiative (BCBPI) can at least rival SWIFT on paper. However, implementation is where things can become complicated.
As the IMF focuses on restoring inflation rates to central bank targets and navigating a world of “low growth, high debt,” they are also watching how the BRICS countries’ new initiatives are changing the landscape.
The Global Sovereign Debt Roundtable (GSDR) has been working to help countries restructure debt, and while progress has been made, there is still much work to be done.