It's 2025, and the global landscape has transformed dramatically over the past decade. Yet, some nations continue to rely on outdated tactics, assuming that threats of tariffs and sanctions can still influence global dynamics.
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 in 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.
However, the Chinese Ministry of Foreign Affairs responded promptly, emphasizing that BRICS is not about confrontation but about fostering cooperation and shared prosperity. The reality is that the world is no longer acquiescing to one-currency dominance or succumbing to sanction-induced pressure.
Take Russia, for instance. When confronted 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) emerged as a homegrown alternative to SWIFT, and the Mir payment card, launched in 2017, took on the roles of Visa and Mastercard. These initiatives insulated the Russian economy and paved the way for deeper financial ties with non-Western allies like Türkiye, Kazakhstan, and nations in the Middle East, reducing dependence on Western-dominated systems.
The United States also restricted Türkiye's access to U.S. technology and equipment, including F-35 jets and armed unmanned aerial vehicles. In response, Türkiye began producing this equipment domestically and has started exporting to Middle Eastern and African nations.
The resilience of Russia and Türkiye is just the tip of the iceberg. More nations are now 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 is not just a club of economically powerful countries but represents a new vision for global collaboration.
BRICS nations have been rewriting the rules of global trade. They have turned to their own currencies for commerce, reducing dependence 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 has increased efforts to finance projects in local currencies, offering a fresh approach to international funding without relying on Western institutions. Furthermore, 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 dollar-dominated system stumble repeatedly, with each crisis impacting continents. From the 2008 financial meltdown to the pandemic-induced global recession, over-reliance on the dollar has proven to be a risky proposition.
As threats, sanctions, and one-currency dominance become relics of the past, nations are embracing cooperation and innovation to build a more stable and equitable global economy. The era of unilateral dominance is waning, giving way to a multipolar world where collaboration supersedes coercion.
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Why threats, sanctions and one-currency dominance are past their prime
cgtn.com
