BRICS is a group of large emerging economies that meet every year to coordinate on trade, finance and politics. The name comes from its first five members: Brazil, Russia, India, China and South Africa. Since 2024 the group has grown, and it now includes Egypt, Ethiopia, Iran, the United Arab Emirates and Indonesia, with Saudi Arabia invited but not formally committed.
BRICS matters to investors because its members want more say in a world financial system built around the US dollar, the IMF and the World Bank. Headlines about a “BRICS currency” or “the end of the dollar” move gold, oil and currency markets, so it helps to know what is real and what is hype.
Where the name BRICS came from
In 2001, Goldman Sachs economist Jim O’Neill wrote a paper arguing that Brazil, Russia, India and China would become some of the biggest economies in the world. He called them the BRICs. It was an investment idea, not an alliance.
The four countries liked the idea enough to make it real. Their leaders held the first summit in Yekaterinburg, Russia, in 2009. South Africa joined in 2010, turning BRIC into BRICS.
Who is in BRICS today?
- Original members: Brazil, Russia, India, China, South Africa
- Joined in January 2024: Egypt, Ethiopia, Iran, United Arab Emirates
- Joined in January 2025: Indonesia
- Invited: Saudi Arabia takes part in meetings but has not formally confirmed membership
- Partner countries: a second tier created in 2024, including countries such as Malaysia, Thailand, Nigeria, Kazakhstan, Vietnam and Belarus
Together, the full members hold close to half of the world’s population and, measured by purchasing power, a bigger share of world output than the G7. They also include several of the largest oil producers, which is why energy markets pay attention.
What BRICS actually does
An annual summit
The chair rotates each year. The leaders meet, issue a long joint statement, and sign agreements on trade, health, technology and finance. The group has no permanent headquarters and no binding treaty, which makes it very different from the EU or NATO.
The New Development Bank
The most concrete BRICS project is the New Development Bank, based in Shanghai and running since 2015. It lends to member countries for infrastructure like roads, water and clean energy, and it has been increasing loans in local currencies instead of dollars.
A reserve pool
The Contingent Reserve Arrangement is a $100 billion pool that members can draw on in a currency crisis. It has never been used in a real emergency, but it is meant as an alternative to the IMF.
Payments in local currencies
Members are building ways to pay each other directly in rupees, yuan, reais or rubles, without going through the dollar. Russia and China already settle most of their trade in their own currencies. This push grew fast after Western sanctions cut Russia off from much of the dollar system in 2022.
Is there a BRICS currency?
No. There is no BRICS currency and no agreed plan to create one. The idea comes up every year, often from Russian officials, but the members are very different economies. China and India are rivals. The UAE and Saudi Arabia tie their currencies to the dollar. Brazil and India have said clearly they are not trying to replace the dollar.
What exists instead is slower and less dramatic: more trade settled in local currencies, more digital payment links between central banks, and more gold in central bank reserves. Our guide on de-dollarization covers how far that has really gone.
Why BRICS matters for your money
Gold
Central banks, led by China, Russia, India and Turkey, have been buying gold at a record pace since 2022. Part of the reason is to hold reserves that cannot be frozen by sanctions. That steady buying is one of the forces behind gold’s strong run. If you are thinking about adding some, see how to buy gold.
Oil
With Saudi Arabia, the UAE, Iran and Russia around the table, BRICS countries produce a large share of the world’s oil. Any move to price more oil in yuan or other currencies gets close attention from markets.
Emerging markets
India and Indonesia are among the fastest growing large economies. Many investors get exposure through broad emerging market index funds. Note that Russia has been removed from major indexes since 2022 and is not investable for most Western investors.
The US dollar
The dollar is still used in close to 90% of foreign exchange trades and makes up more than half of the world’s official reserves. BRICS is not close to changing that. But each small shift in trade settlement chips away at the edges, and US policy, including tariff threats against countries that move away from the dollar, keeps the topic in the news.
Strengths and weaknesses of BRICS
Strengths: huge population, fast-growing economies, large energy and commodity reserves, and a shared wish for more voice in global finance.
Weaknesses: members disagree on a lot, from border disputes between China and India to different views on Russia. They have no common market, no shared currency and very different political systems. China’s economy is bigger than all the other members combined, which makes some members wary.
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Frequently asked questions
How many countries are in BRICS?
Ten full members as of 2026: Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the UAE and Indonesia. Saudi Arabia is often counted but has not formally joined.
Is BRICS a threat to the US dollar?
Not in the near term. It is slowly reducing how much its members rely on the dollar for trade with each other, but the dollar remains the main currency for trade, debt and reserves worldwide.
Can I invest in BRICS?
Not directly. You can buy funds that cover emerging markets, or single-country funds for places like India or Brazil. These are higher risk than broad US or global index funds and usually belong in a small slice of a diversified portfolio. Start with the best index funds for beginners.
Is Canada or the UK in BRICS?
No. Both are members of the G7, the group of large advanced economies that BRICS is often compared with.
This article is general information, not financial advice. Membership and policies change, so check recent news before acting on any of it.
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