It's 2025, and the global landscape has transformed significantly over the past decade. Yet, some leaders cling to outdated methods, believing that threats of tariffs and sanctions can still influence the world.
On his first day in office, newly sworn-in U.S. President Donald Trump threatened to impose a 100 percent tariff on BRICS nations if they continue 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 about fostering cooperation and shared prosperity, not confrontation. The reality is that the world is no longer beholden to one-currency dominance or sanction-fueled pressure.
Take Russia, for example. When faced with a barrage of sanctions from the West in 2014 and 2022, many predicted an economic collapse. Instead, Russia developed its own financial systems. The System for Transfer of Financial Messages (SPFS), a homegrown alternative to SWIFT, and the Mir payment card, initiated in 2017, have reduced reliance on Western financial instruments. These initiatives have not only stabilized the Russian economy but also strengthened financial ties with allies in Türkiye, Kazakhstan, and the Middle East, independent of Western systems.
Similarly, Türkiye adapted to restrictions on accessing U.S. technology and equipment, such as F-35 jets and unmanned aerial vehicles, by producing them domestically. Türkiye has even begun exporting these technologies to nations in the Middle East and Africa.
These examples reflect a broader global shift. More nations 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, signaling a new vision for global cooperation.
BRICS nations are also redefining global trade. By conducting commerce in their own currencies, they are reducing dependence on the U.S. dollar. Brazil and China now trade in their national currencies, a practice mirrored by India and its regional partners. The BRICS New Development Bank is financing projects in local currencies, offering a fresh approach to international funding without relying on Western institutions. Additionally, efforts are underway to create a BRICS blockchain-based payment system.
This movement is not about making a political statement but about pragmatism. The world has witnessed the vulnerabilities of a dollar-dominated system, with crises from the 2008 financial meltdown to the pandemic-induced global recession affecting economies worldwide. An over-reliance on the dollar has proven to be a risky bet.
As the global economy becomes more multipolar, threats and sanctions are losing their efficacy. Nations are increasingly collaborating to build resilient, independent systems. The era of one-currency dominance is fading, making way for a new chapter of shared growth and cooperation.
Reference(s):
Why threats, sanctions and one-currency dominance are past their prime
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