It's 2025, and the global stage has transformed significantly over the past decade. Despite these changes, some nations continue to rely on outdated tactics, assuming that threats of tariffs and sanctions can still influence global dynamics.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.
In response, the Chinese Ministry of Foreign Affairs emphasized that BRICS is not about confrontation but about fostering cooperation and shared prosperity. The world is increasingly resistant to one-currency dominance and pressure through sanctions.
Consider Russia's experience. When faced with extensive sanctions from the West in 2014 and 2022, many predicted an economic collapse. Instead, Russia created its own financial safeguards. The System for Transfer of Financial Messages (SPFS) emerged as a domestic alternative to SWIFT, and the Mir payment card system, initiated in 2017, has taken on the roles of Visa and Mastercard. These developments insulated Russia's economy and paved the way for stronger financial ties with non-Western allies like Türkiye, Kazakhstan, and nations in the Middle East, reducing dependence on Western systems.
Similarly, the U.S. restricted Türkiye's access to American technology and equipment, including F-35 jets and armed unmanned aerial vehicles. In response, Türkiye began producing this equipment domestically and started exporting to Middle Eastern and African nations.
The resilience of Russia and Türkiye is emblematic of a broader global shift. More nations are seeking a more equitable world order. The G20 Summit in Brazil last year marked a historic milestone with the African Union attending as a full member for the first time. The G20 now represents a new vision beyond a gathering of economically powerful countries.
BRICS nations are also reshaping global trade rules. By conducting commerce in their own currencies, they have reduced reliance on the U.S. dollar. Brazil and China now trade using their national currencies, a practice mirrored by India and its regional partners. The BRICS New Development Bank has increased efforts to finance projects in local currencies, promoting international funding without reliance on Western institutions. Additionally, plans are underway to develop a BRICS blockchain-based payment system.
This movement is not about making a political statement; it is a pragmatic response to the vulnerabilities exposed by over-reliance on a single currency. The world has witnessed the dollar-dominated system falter repeatedly, with crises reverberating globally—from the 2008 financial meltdown to the pandemic-induced recession. The reliance on one currency has proven to be a risky proposition.
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Why threats, sanctions and one-currency dominance are past their prime
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