Geopolitical tensions in Latin America are escalating again, particularly regarding Venezuela and pressure from US policies. This situation has prompted the BRICS countries to take cautious but strategic steps, with a primary focus on maintaining regional stability and protecting long-term economic interests. Rather than open confrontation, the BRICS have chosen the path of diplomacy and regional cooperation.

Brazil, as a BRICS member and a major power in Latin America, plays a key role in fostering dialogue and preventing conflict escalation. Meanwhile, China and Russia are strengthening economic ties with regional countries, particularly in the energy and infrastructure sectors. This step aims to ensure a secure supply of commodities amid geopolitical tensions.

On the financial side, the BRICS are capitalizing on these tensions to accelerate their de-dollarization agenda. Energy and trade transactions are increasingly being denominated in local currencies, or the yuan, reducing reliance on the US dollar. This strategy provides developing countries with additional protection from the risks of sanctions and fluctuations in US monetary policy.

Impact on Global Markets

Latin American tensions coupled with BRICS measures have the potential to:

Support gold prices due to increased global uncertainty

Gradually depress the US dollar, especially if de-dollarization expands

Increase energy market volatility, particularly in oil
For the global economy, these BRICS measures accelerate the shift in economic power toward a multipolar world, although in the short term, markets will remain cautious. (Cay)

Source: Newsmaker.id