It's 2025, and the global landscape has transformed dramatically over the past decade. Yet, some nations persist with archaic strategies, believing that threats of tariffs and sanctions can still influence the world order.
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 continue their efforts toward de-dollarization. \"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.
However, the Chinese Ministry of Foreign Affairs swiftly responded, emphasizing that BRICS is not about confrontation but fostering cooperation and shared prosperity. The reality is becoming clear: the global community is increasingly rejecting the dominance of a single currency and the pressure of sanctions.
Consider Russia's experience. When faced with a barrage of Western sanctions in 2014 and 2022, many anticipated an economic collapse. Instead, Russia engineered its own financial lifelines. The System for Transfer of Financial Messages (SPFS) emerged as a homegrown alternative to SWIFT, while the Mir payment card, launched in 2017, stepped in for Visa and Mastercard. These initiatives not only shielded the Russian economy but also paved the way for deeper financial ties with non-Western allies like Türkiye, Kazakhstan, and nations in the Middle East, all without reliance on Western-dominated systems.
Similarly, when the U.S. restricted Türkiye's access to advanced technology and equipment, including F-35 jets and armed unmanned aerial vehicles, Türkiye turned adversity into opportunity. By investing in domestic production, Türkiye now manufactures some of these technologies independently and has begun exporting them to Middle Eastern and African nations.
The resilience demonstrated by Russia and Türkiye is emblematic of a broader shift. More countries are seeking a more equitable world order. Last year's G20 Summit in Brazil marked a historic moment with the African Union joining as a full member for the first time, reflecting a new vision for global cooperation.
BRICS nations are also redefining global trade. By conducting commerce in their own currencies, they are reducing dependency on the U.S. dollar. Brazil and China now trade using their national currencies, a strategy adopted by India and its regional partners as well. The BRICS New Development Bank is intensifying efforts to finance projects in local currencies, offering an innovative approach to international funding that sidesteps traditional Western institutions. There are also ongoing endeavors to establish a BRICS blockchain-based payment system.
This movement isn't about making a political statement; it's about pragmatism. The world has witnessed the vulnerabilities of a dollar-dominated system, with crises like the 2008 financial meltdown and the pandemic-induced global recession impacting economies worldwide. Over-reliance on a single currency has proven to be a precarious strategy.
As we move forward, it's evident that threats, sanctions, and one-currency dominance are losing their efficacy. Nations are increasingly embracing collaboration and diversification, paving the way for a more balanced and resilient global economy.
Reference(s):
Why threats, sanctions and one-currency dominance are past their prime
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