BRICS Summit: New Horizons for Emerging Economies

The BRICS club of emerging economies, now expanded, convened its first summit in Russia. Leaders proposed projects such as a grain exchange and a cross-border payments system, aiming to reduce dollar dependency. Analysts and officials weigh in on BRICS' evolving global role and challenges ahead.

This week, Russia hosted the first summit of the now-expanded BRICS coalition of emerging economies. Leaders agreed on a range of initiatives, including a grain exchange and a system for cross-border payments, all aimed at deepening economic cooperation and reducing reliance on the U.S. dollar.

Abebe Aemro Selassi, Director of the African Department at IMF, stated that key IMF and World Bank members include countries like Brazil, India, and China, which play vital roles in shaping international policies. He expressed skepticism towards framing IMF/World Bank versus BRICS as opposing entities.

Meanwhile, ING analysts noted that President Putin has shelved the idea of a single BRICS currency, focusing instead on using BRICS currencies more extensively. Analysts and officials emphasize the need for bolstered international cooperation amid changing global dynamics.

(With inputs from agencies.)