Argentina rejects BRICS invitation amid Milei’s rise to power.
Argentina withdraws from the BRICS expansion plan following Milei’s victory.
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Argentina has confirmed that it will not join BRICS, a group of emerging economies that includes Brazil, Russia, India, China, and South Africa. Diana Mondino, the future foreign minister of Milei, confirmed the decision on her social media accounts.
The decision comes as the country prepares for the inauguration of Javier Milei, a far-right libertarian who won the presidential election in November.
BRICS, founded in 2006, is a strategic alliance that seeks to strengthen economic and political cooperation among its members and challenge the dominance of Western economies in global financial institutions. The group also aims to create a new market that cannot be controlled by the US and where alternative currencies, such as central bank digital currencies (CBDCs) or cryptocurrencies, can be used.
In August 2023, at the 15th BRICS Summit in Johannesburg, South Africa, the group announced the inclusion of six new countries: Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates. However, after the election of Milei, a vocal critic of BRICS and its members, Argentina reversed its position and declined the invitation.
Milei, who will take office on December 10, has vowed to abolish the central bank and dollarize the economy to overcome Argentina’s economic crisis, which has left 40% of the population in poverty and pushed inflation to more than 140%.
He has also promised to slash government spending, cut taxes, deregulate the markets, and promote the use of cryptocurrencies.