The Banking Executive Magzine - July 2025 Issue

BRICS 2025 Saudi Arabia, Iran, and UAE bring energy dominance, while Indonesia and Egypt add manufacturing and lo- gistics strength. BRICS is pushing to settle trade in local currencies, reducing reliance on the US dollar. China’s Cross, Bor- der Interbank Payment System (CIPS) and Russia’s rubble, based trade are key tools in this shift. A BRICS cur- rency is under discussion, which could further challenge dollar hege- mony. New Development Bank (NDB) is expanding its lending footprint, offer- ing alternatives to Western institu- tions like the International Monetary Fund (IMF) and World Bank. This boosts trade by funding infrastruc- ture, logistics, and digital connectiv- ity across member states. The United States (US), under Presi- dent Trump, has threatened addi- tional tariffs on BRICS nations, accusing them of “anti-American policies”. These tariffs could disrupt trade flows, especially for countries like South Africa and Nigeria, which rely heavily on exports to the US. BRICS+ is building a parallel trade ecosystem, with new supply chains, payment systems, and trade agree- ments. This could fragment global trade but it empowers emerging economies to trade on more equi- table terms. As such, BRICS expansion is redraw- ing the map, not just of who trades with whom, but how trade is con- ducted. MOST IMPACTED SECTORS The BRICS+ expansion is reshaping global economic dynamics, and sev- eral sectors are impacted as follows: ENERGY SECTOR • Oil & Gas: With Saudi Arabia, Iran, and UAE onboard, BRICS+ now controls over 40% of global crude oil pro- duction. • Natural Gas: The bloc produces 32% of global output, with potential to rise if Al- geria joins. • Renewables: BRICS+ is projected to generate 80% of its power from renewables by 2050, surpassing the Group of seven G7’s capacity. • Critical Minerals: The bloc holds 75% of global man- ganese, 50% of graphite, and 28% of nickel, essential for batteries and clean tech. TECHNOLOGY & ARTIFICIAL INTELLIGENCE (AI) • Digital Sovereignty: BRICS nations are building inde- pendent fibre-optic networks, satellite systems, and cloud infra- structure. • AI Collaboration: Joint working groups are develop- ing facial recognition, cross-border data sharing, and AI governance frameworks. • Semiconductors & Quantum Computing: India, Russia, and China are invest- ing in chip manufacturing and quantum encryption. AGRICULTURE & FOOD SECURITY • Agri-Trade: BRICS+ accounts for 19.5% of global agricultural trade, with Brazil, Russia, and India leading in grains and livestock. • Food Reserves: Plans for a BRICS Grain Exchange and Food Security Reserve aim to stabilize prices and supply. • Innovation & Sustainability: Emphasis on digital agriculture, land restoration, and climate, re- silient farming. INFRASTRUCTURE & DEVELOPMENT FINANCE • New Development Bank (NDB): Expanded lending for transport, en- ergy, and digital infrastructure, es- pecially in Global South nations. • Agri, Infrastructure: Focus on storage, logistics, and ir- rigation to boost food production and trade. FINANCE & TRADE • De-dollarization: Push for local currency settlements and a potential BRICS currency to reduce reliance on the US dollar. • Digital Trade: Initiatives like digital certification and AI, powered customs systems aim to streamline cross-border commerce. BRICS 2025 EXPANSION IMPACT ON TECH INDUSTRY The BRICS+ expansion has a major impact on the technology (tech) in- dustry, especially in areas where dig- ital sovereignty, AI innovation, and infrastructure independence are top priorities. China’s digital currency is influenc- ing BRICS+ members to explore cen- tral bank digital currencies (CBDCs). A decentralized system is being dis- cussed to facilitate trade outside the SWIFT network. BRICS is promoting shared develop- ment of AI tools and software to re- duce reliance on proprietary Western tech. Countries like Brazil and South Africa are nurturing tech start-ups in fintech, health tech, and agri-tech. BRICS 2025 is making a strategic re- alignment of the digital world. BRICS+ is building a parallel tech ecosystem that could redefine who leads in innovation, security, and connectivity. IMPACT OF BRICS 2025 ON WORLD BALANCE OF POWER The BRICS bloc, now expanded to include Egypt, Ethiopia, Iran, Indone- sia, and the UAE, has become a the BANKING EXECUTIVE 44 ISSUE 199 JULY 2025