Coin Edition -
- Javier Milei has emerged as the winner of the presidential election in Argentina.
- Argentina is likely to decline an invitation to join BRICS.
- Milei promised to replace the Peso with the U.S. dollar to tackle the financial crisis.
Javier Milei has emerged as the winner of the just-concluded presidential election in Argentina, and stakeholders are already considering the socio-economic implications of the far-right politician’s victory. Top among the issues is the potential decline of Argentina’s invitation to join the BRICS economic bloc, given just three months ago.
As part of his campaign promises, Milei vowed to abolish the Central Bank of Argentina and stop using the country’s national currency, the Peso. He told the people that he would replace the Peso with the U.S. dollar as part of measures to tackle the persistent financial crisis currently facing the country.
Milei also plans to cut ties with Brazil and China, two of Argentina’s most important trading partners for several years. He noted during the campaign that he would not retain political links with China or any other communist country.
Earlier this year, BRICS, an intergovernmental organization comprising Brazil, Russia, India, China, and South Africa, made the headlines after extending invitations to six more nations in an expansion strategy. The invited countries include Argentina, Saudi Arabia, the United Arab Emirates (UAE), Iran, Egypt, and Ethiopia.
Following the current political outlook in Argentina and the president-elect’s campaign promises, it has become unlikely that Argentina would accept the invitation. Diana Mondino, one of Argentina’s top economists tipped to become the new foreign minister, was rumored to have said her country would no longer be joining BRICS.
According to reports, Mondino said she does not understand the benefit of Argentina joining BRICS. She noted that if such benefits emerge in the future, they would analyze them.
Mao Ning, a Chinese foreign ministry spokesperson, responded to the rumor by reaffirming that the BRICS cooperation mechanism is an important platform for emerging markets and developing countries to strengthen solidarity and cooperation and uphold common interests.
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