BRICS Summit 2024: Big Promises, Little Impact?

Russia will host the BRICS summit in Kazan from October 22-24, where President Vladimir Putin will push for a new SWIFT-like payment system to challenge US dollar dominance.

The group, comprising Brazil, Russia, India, China, and South Africa, has expanded to include Egypt, Ethiopia, Iran, and the UAE, with further expansion on the table as nations like Thailand and Myanmar express interest in joining.

As we lead into the BRICS summit, the Dollar Index (DXY), may be “overstretched” according to DBS’ FX analyst Philip Wee, after appreciating more than 3% this month.

However, Jim O’Neill, the former UK treasury minister who coined the term "BRICS" back in 2001 remains skeptical about BRICS. He argues that while the summits generate media attention, they rarely produce meaningful outcomes. O’Neill also points to ongoing tensions between key members China and India that get in the way of the block’s aspirations.