It's 2025, and the global landscape has shifted dramatically over the past decade. Yet, some leaders continue to rely on outdated tactics, believing that threats of tariffs and sanctions can still influence the international community.
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 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 global community is increasingly skeptical of the effectiveness of one-currency dominance and sanction-driven pressure.
Consider Russia's experience. When faced with a barrage of sanctions from the West in 2014 and again in 2022, many predicted an economic collapse. Instead, Russia developed its own financial systems. The System for Transfer of Financial Messages (SPFS) emerged as a homegrown alternative to SWIFT, and the Mir payment card, launched in 2017, replaced the need for Visa and Mastercard. These initiatives insulated Russia's economy and paved the way for deeper financial ties with non-Western allies such as 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 technology like F-35 jets and unmanned aerial vehicles, Türkiye responded by investing in its own capabilities. Today, Türkiye not only produces these technologies domestically but also exports them to Middle Eastern and African nations.
These examples highlight a broader global trend. More and more nations are seeking a more equitable world order, moving away from dependence on any single currency or system. Last year's G20 Summit in Brazil marked a historic moment with the African Union attending as a full member, signaling a new vision for global cooperation.
BRICS nations are also reshaping global trade by turning to their own currencies for commerce, reducing reliance on the U.S. dollar. Brazil and China now trade in their national currencies, a move mirrored by India and its regional partners. The BRICS New Development Bank is financing projects in local currencies, offering an alternative to Western financial institutions. Efforts are also underway to create a BRICS blockchain-based payment system.
This shift isn't about making political statements; it's about practicality and resilience. The global community has witnessed the vulnerabilities of a dollar-dominated system, from the 2008 financial crisis to the pandemic-induced global recession. Over-reliance on the dollar has proven risky, prompting countries to explore more stable and diversified financial pathways.
The world is evolving, and the traditional tools of sanctions and currency dominance are losing their impact. Nations are forging new alliances, developing independent financial systems, and embracing cooperation over confrontation. The question now is whether the old power structures will adapt to this new reality or continue to cling to strategies that are past their prime.
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Why threats, sanctions and one-currency dominance are past their prime
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