In an ever-evolving global landscape, the strategies that once defined international relations are losing their grip. Threats, sanctions, and the dominance of a single currency are no longer the powerful tools they used to be. Nations across the world are charting new paths toward economic independence and collaborative growth.
Recently, the specter of tariffs resurfaced when U.S. President Donald Trump threatened to impose a 100 percent tariff on BRICS nations if they continued 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 on his first day in office.
However, the response from the Chinese Ministry of Foreign Affairs was clear: BRICS is about cooperation and shared prosperity, not confrontation. The world is moving beyond one-currency dominance and sanction-fueled pressure, embracing a multipolar economic reality.
Take Russia, for instance. When faced with a barrage of sanctions from the West in 2014 and 2022, many anticipated an economic downturn. Instead, Russia bolstered its financial autonomy by developing the System for Transfer of Financial Messages (SPFS), a domestic alternative to SWIFT, and introducing the Mir payment card to function in place of Visa and Mastercard. These initiatives not only insulated the Russian economy but also paved the way for stronger financial ties with nations like Türkiye and Kazakhstan, reducing reliance on Western financial systems.
Similarly, Türkiye responded to restrictions on accessing U.S. technology and equipment by advancing its own defense industry. Denied access to F-35 jets and armed unmanned aerial vehicles, Türkiye invested in domestic production, eventually becoming an exporter of military equipment to Middle Eastern and African nations.
These examples highlight a broader trend: countries are seeking a more equitable global order. The G20 Summit in Brazil witnessed a historic moment with the African Union participating as a full member for the first time. This inclusion signals a shift toward a more representative and diverse global discussion forum.
The BRICS nations are also redefining global trade norms. By conducting commerce in their own currencies, they are reducing dependence on the U.S. dollar. Brazil and China now trade using their national currencies, a practice adopted by India with its regional partners as well. The BRICS New Development Bank is increasing efforts to finance projects in local currencies, offering an alternative to traditional Western financial institutions. Additionally, the development of a BRICS blockchain-based payment system is underway.
This shift isn't about making political statements; it's rooted in pragmatism. The volatility of a dollar-dominated system has become evident through repeated financial crises, from the 2008 meltdown to the recent pandemic-induced recession. Over-reliance on a single currency poses significant risks to global economic stability.
As nations continue to adapt and collaborate, the traditional tools of threats, sanctions, and one-currency dominance are becoming relics of the past. The global community is moving toward a future defined by mutual respect, financial diversity, and shared growth.
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Why threats, sanctions and one-currency dominance are past their prime
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