The year is 2025, and the global landscape has transformed dramatically over the past decade. Despite these changes, some nations continue to rely on outdated strategies, believing that threats of tariffs and sanctions can still influence international relations.
On his first day in office, recently sworn-in U.S. President Donald Trump threatened to impose a 100 percent tariff on BRICS nations if they persist with their de-dollarization efforts. \"As a BRICS nation… they'll have a 100 percent tariff if they so much as even think about doing what they thought, and therefore they'll give it up immediately,\" he declared.
In response, the Chinese Ministry of Foreign Affairs emphasized that BRICS is not about confrontation but about fostering cooperation and shared prosperity. The reality is that the world is no longer accepting the dominance of a single currency or succumbing to pressure through sanctions.
Take Russia, for instance. When faced with a surge of sanctions from the West in 2014 and 2022, many anticipated an economic collapse. Instead, Russia developed its own financial systems. The System for Transfer of Financial Messages (SPFS) emerged as a domestic alternative to SWIFT, and the Mir payment card, introduced in 2017, has been fulfilling the functions of Visa and Mastercard. These initiatives insulated the Russian economy and paved the way for deeper financial ties with non-Western allies such as Türkiye, Kazakhstan, and nations in the Middle East, without relying on Western-controlled systems.
The United States also restricted Türkiye's access to U.S. technology and equipment, including F-35 jets and armed unmanned aerial vehicles. As a result, Türkiye began producing some of this equipment domestically and started exporting to Middle Eastern and African nations.
The resilience of Russia and Türkiye is just the tip of the iceberg. An increasing number of countries are seeking a more equitable world order. The G20 Summit in Brazil last year marked a historic moment, with the African Union attending as a full member of the bloc for the first time. Today, the G20 represents not just economically powerful countries but reflects a new vision for global cooperation.
BRICS nations have also been reshaping global trade rules. They have started trading in their own currencies, reducing dependence on the U.S. dollar. Brazil and China now engage in commerce using their national currencies, a move mirrored by India and its regional partners. The BRICS New Development Bank has intensified efforts to finance projects in local currencies, offering a fresh approach to international funding without reliance on Western institutions. Additionally, there are ongoing efforts to create a BRICS blockchain-based payment system.
This shift is not about making a political statement; it's about pragmatism. The world has witnessed the vulnerabilities of a dollar-dominated system, with each financial crisis impacting economies worldwide. From the 2008 financial meltdown to the pandemic-induced global recession, over-reliance on the dollar has proven to be a precarious gamble.
Reference(s):
Why threats, sanctions and one-currency dominance are past their prime
cgtn.com
