BRICS New Development Bank (NDB) Impact on International Trade. Silent major shift?

As BRICS expands its influence with new members in the New Development Bank (NDB), its growing resource dominance may redefine global trade. Here’s how this expanded BRICS+ alliance could shape the future:

Resource Powerhouse:

With both existing and NDB-associated members, BRICS controls substantial shares of critical global resources:

• Oil & Gas: BRICS and NDB members hold over 40% of global oil production through key players like Russia, Saudi Arabia, Algeria, and the UAE, strengthening their position in global energy markets.
• Minerals: China, Brazil, South Africa, and resource-rich associates like Indonesia provide critical minerals, including iron ore, rare earths, nickel, and bauxite, essential for manufacturing, tech, and green industries.
• Agriculture & Freshwater: Brazil, Russia, and Ethiopia enhance BRICS' hold on agriculture and freshwater resources, bolstering food security within the bloc.

What This Means for International Traders:

1. Localized Supply Chains: The BRICS offers new regional trade routes across Africa, the Middle East, and Asia, with incentives such as reduced tariffs and favorable policies within BRICS markets.
2. Currency Flexibility: As BRICS+ explores alternatives to the U.S. dollar, businesses trading with BRICS and NDB countries may benefit from using local currencies like the yuan, rupee, and potentially the UAE dirham or Indonesian rupiah.
3. Sanctions Preparedness: As BRICS and NDB influence grows, so does the potential for increased sanctions from Western economies. Traders should explore alternative payment systems and diversify logistics for continued trade flow.

Will BRICS Maintain Harmony?

Despite diverse priorities, BRICS members share mutual interests in reducing Western financial dominance and securing energy and trade autonomy. While internal harmony may face challenges, the alignment on resource control and trade diversification provides a foundation for growth.

For global traders, the BRICS+ evolution offers opportunities to adapt early and gain an advantage in a multipolar world.

Are we witnessing a 'silent' major shift in Trade? Do you think any change would be harder than it seems? Will the West seek cooperation in the future...?

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