Senegal’s Potential BRICS Membership: A Boost for Trade and Currency
The potential expansion of the BRICS bloc has garnered significant attention globally. With the upcoming annual summit just months away, this topic's discussions hold great significance.
Alternatively, there has been speculation about the possibility of Senegal joining the bloc and adopting the BRICS currency.
In recent months, over 20 countries have reportedly expressed their interest in becoming members of the BRICS bloc. Undeniably, the growing popularity of this collective underscores the potential for economic alliances to achieve even greater success.
Among the various countries being considered, Senegal emerges as a prime contender for inclusion. Its interest in joining and adopting the BRICS currency is evident, as demonstrated by the presence of its foreign minister at a BRICS expansion dialogue held in May 2022.
While Senegal may not possess the size and influence of other potential BRICS nations, it offers unique benefits. Notably, the country contributes significantly to gold mining and energy production, boasting substantial reserves of gold, oil, and gas. These factors are expected to play a pivotal role in the nation’s economic development as it continues to expand its exports worldwide.
With a growth rate of 1.6% in 2022 and a population of 17 million, Senegal’s addition to the BRICS bloc would further enhance its trade assets. The bloc already represents 42% of the global population, and Senegal’s participation as a trade player could contribute to the development of the BRICS currency.
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Currently, Senegal is a member of the African Continental Free Trade Agreement (afCFTA). Interestingly, another large country within this collective, Egypt, has also expressed its desire to join the BRICS economic bloc.
This agreement facilitates a reduction of tariffs to zero on 98% of intra-African trade. Furthermore, Senegal already maintains strong trade relations with India and China, two key members of the BRICS bloc.
The inclusion of Senegal would greatly benefit the development of a BRICS currency for trade purposes. Leveraging its export potential, Senegal’s adoption of the currency could propel the alternative trajectory and reduce reliance on the US dollar as the global reserve currency.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
