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Ramaphosa’s Push at BRICS Summit: Ending US Dollar Dominance
President Cyril Ramaphosa addressed the BRICS Summit, highlighting the need to shift toward local currencies to challenge US dollar dominance in global trade. As the BRICS bloc meets to diversify trade and investment, his call for enhanced cooperation underscores the importance of reducing reliance on the US dollar for a more resilient economic framework.
A Significant Gathering
Ramaphosa addressed the BRICS Business Forum virtually, where he emphasized the importance of the bloc in fostering economic collaboration. The BRICS group has expanded to include Egypt, Ethiopia, Iran, and the UAE, joining founding members Brazil, Russia, India, China, and South Africa.
“The expanded BRICS now represents 43% of the global population, 27% of GDP, and a fifth of world exports. The opportunities for economic progress are immense,” Ramaphosa stated.
Strengthening Economic Ties
The South African president highlighted the crucial role of the BRICS Business Council in enhancing trade between member nations.
He announced plans to strengthen correspondent banking networks to facilitate local currency transactions and reduce reliance on the US dollar.
“As governments, we are committed to supporting business,” he said, looking forward to the BRICS finance ministers’ report on these initiatives.
Embracing Technological Advancements
Amid rapid technological changes, Ramaphosa urged BRICS countries to create a collaborative environment for digital advancements. He highlighted e-commerce’s potential to enhance market access and drive growth, advocating for international standards on cross-border taxation and data privacy.
South Africa’s Economic Outlook
Ramaphosa also discussed South Africa’s improved economic outlook, citing revised growth forecasts for the next two years. He emphasized the government’s commitment to structural economic reforms, infrastructure investment, and creating a conducive business environment.
With a diverse economy featuring strong manufacturing and service industries, South Africa is a key player in the continent’s growth.
“We invite fellow BRICS countries to invest in South Africa and the broader African continent,” Ramaphosa said. He noted that the African Continental Free Trade Area is unlocking vast opportunities for trade and investment across the region.
Looking Ahead
This year’s BRICS Summit offers a chance for expansion, with President Putin inviting countries like Azerbaijan, Belarus, Turkey, and Mongolia to join. As Ramaphosa and other leaders discuss ending US dollar dominance and promoting local currency settlements, they aim to reshape global trade dynamics and strengthen economic ties among BRICS nations.
In conclusion, Ramaphosa’s participation highlights South Africa’s commitment to collaboration and economic progress. By advocating for reduced reliance on the US dollar and fostering trade in local currencies, he seeks to enhance the economic landscape for South Africa and all member countries, leveraging their combined resources and populations.
