Iran wants to join the BRICS. Now everyone is looking for an alternative system to the IMF …
Iran has asked to join the BRICS group of major emerging economies, which includes China, Russia and India, Reuters reported Tuesday , a move that would help secure an alternative economic alliance to the West.
Iran is a major holder of oil and gas resources, as is Russia, while China is the world's largest oil importer and one of the largest gas importers.
BRICS, an acronym for its members Brazil, Russia, India, China and South Africa, is what China and Russia propose as an emerging market alternative to the West. The term for the informal cluster of emerging economies was originally coined in 2001 as "BRIC" by Goldman Sachs economist Jim O'Neill in his "Building Better Global Economic BRICs" report.
In its current form, the group represents 41% of the world population, a quarter of global GDP and 16% of world trade.
In recent years, Iran has forged ties with China and Russia, and China is the main market for Iranian oil exports. Iran, which has been under US sanctions since 2018, has continued to export some of its oil to China, which generally rejects US sanctions.
Russia, for its part, is trying to strengthen relations with countries it considers "friends" – such as China and Iran – while "non-friendly" countries, including the United States, the European Union, the The UK, Australia and other US allies impose sanctions on Russia's economy, banking sector and oil exports due to the Russian invasion of Ukraine.
A spokesperson for the Iranian Foreign Ministry told Reuters that Iran's eventual membership of the BRICS "would bring added value for both sides."
In addition to Iran, Argentina has also asked to join the BRICS group, according to Russia. According to Russia, the enlargement of the BRICS is proof that the West cannot isolate Moscow.
"While the White House was thinking about what else to shut down in the world, ban or ruin, Argentina and Iran have been asking to join the BRICS," Russian Foreign Ministry spokeswoman Maria Zakharova said Tuesday.
However, it should be noted that the BRICS are essentially an economic, rather than a political, agreement: an attempt is made to create an alternative payment and financing system that is not subject to the IMF. This is due to the “Military” use of the Swift and the Dollarno, not because there could be such a broad political and military agreement. The birth of these "Super BRICS", if any, will be a demerit of the US rather than a real rapprochement of fundamentally different interests.
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The article Iran wants to join the BRICS. Now everyone is looking for an alternative system to the IMF… it comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/iran-vuole-entrare-nei-brics-ora-tutti-cercano-un-sistema-alternativo-al-fmi/ on Wed, 29 Jun 2022 07:00:44 +0000.