Last week Russia pressed the BRICS nations again to consider an exchange mechanism for the trading of grains, noting that this bloc is now fully self-sufficient in grains. This arrangement would most likely require China's currency to be used as a third-party currency, however, which is a role that China strongly resists.

The recent inclusion of the UAE into the BRICS+ bloc of nations, however, opens new possibilities. Were they to establish an exchange in the UAE that trades both grains and energy, this would be much more workable. The United Arab Emirates has nearly $200 billion in USD reserves, which are growing by the month. These reserves could theoretically be used as overnight liquidity, without ever leaving the bloc; in fact, without ever leaving UAE's banking system.

Such a system would be highly attractive to other states who are strong producers of natural resources, but lack sufficient USD to trade, such as Argentina. Naturally it would also attract countries with concerns of economic sanctions, or of their assets being frozen by Western governments.

To make such a regime a reality, much work would need to be done, but two big hurdles have already been cleared: that these BRICS-plus nations are net producers of both food and energy means that they can operate as cartels; and, that UAE could provide both the locus and the deep pools of capital and trading knowledge that will be required.

Resources and links:
What Russia's grain exchange for the BRICS means for the world
https://asiasociety.org/australia/why...

Russia doubles down on BRICS grain-exchange proposal
https://www.producer.com/markets/russ...

Russia pushing for BRICS grain exchange
https://www.world-grain.com/articles/...

BRICS admit 6 new members
https://www.scmp.com/news/china/diplo...

Chart, Russian grain exports
https://www.csis.org/analysis/food-si...

Brazil tops US, now leads the world in corn exports
https://www.reuters.com/markets/commo...

Foreign exchange reserves, UAE
https://www.ceicdata.com/en/indicator...