CBN Raises Alarm Over Global Trade Disruption By BRICS Countries

The Central Bank of Nigeria has raised concerns over trade disruptions due to the renewed rush for BRICS.

BRICS is an acronym for an economic bloc comprising Brazil, Russia, India, China, and South Africa formed in 2010 in addition to South Africa.

The bloc has become the nightmare of the G7, a group of seven intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States. The European Union is a “non-enumerated member”.

BRICS is currently trying to woo 69 countries including 54 African states and the leaders of major Global South bodies.

The CBN acting governor, Folashodun Adebisi Shonubi, said the increased polarization of the global economy is causing uncertainty in the direction of global trade.

“China’s slow recovery is dampening global trade, while the increasing polarization of the global economy with several economies seeking macroeconomic alliances with the group of BRICS countries, is increasing uncertainty in the direction of trade flows,” he said at the recently concluded Monetary Policy Committee meeting.

BRIC in 2022 accounted for over 32 per cent of the global economy’s GDP and 18 per cent of global trade.

The bloc attracted 25 per cent of global foreign direct investment and close to 40 per cent of the world’s population.

Shonubi said BRICS and the impact of the Russia-Ukraine war are would push commodity prices higher.

“Notable amongst these, is the continued hostility between Russia and Ukraine, as Russia reneged from further renewal of the Black Sea Agreement. This development would likely push commodity prices much higher than current levels,” he added.