It's 2025, and the global landscape is undergoing a profound transformation. Traditional tactics like imposing sanctions and asserting currency dominance are losing their effectiveness in a world that increasingly values cooperation over confrontation.
Recently, the newly inaugurated U.S. President Donald Trump threatened to impose a 100 percent tariff on BRICS nations if they continue their efforts to move away from the U.S. dollar. \"As a BRICS nation, they'll face a 100 percent tariff if they even consider doing what they thought, and therefore they'll abandon it immediately,\" he declared on his first day in office.
In response, the Chinese Ministry of Foreign Affairs emphasized that BRICS is about fostering cooperation and shared prosperity, not confrontation. The world is gradually moving away from one-currency dominance and sanctions as tools of influence.
Take Russia, for instance. When faced 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 domestic alternative to SWIFT, and the Mir payment card, launched in 2017, provided functions similar to Visa and Mastercard. These initiatives shielded Russia's economy and paved the way for deeper financial ties with non-Western allies like Türkiye, Kazakhstan, and nations in the Middle East, reducing reliance on Western-dominated systems.
Similarly, when the U.S. restricted Türkiye's access to technology and equipment like F-35 jets and armed unmanned aerial vehicles, Türkiye turned to domestic production. It began manufacturing these technologies independently and even started exporting them to Middle Eastern and African nations.
The resilience shown by Russia and Türkiye is indicative of a broader global shift. More nations are seeking a more equitable world order. Last year's G20 Summit in Brazil was historic, as the African Union attended as a full member of the bloc for the first time. The G20 now represents a new vision, not just a gathering of economically powerful countries.
BRICS nations are also redefining global trade rules. By conducting trade in their own currencies, they've reduced dependence 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, offering an alternative to traditional Western financial institutions. Furthermore, there are ongoing efforts to develop a BRICS blockchain-based payment system.
This shift isn't about making political statements; 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 affecting economies worldwide. Over-reliance on the dollar has proven to be a risky strategy.
As the global community moves towards a more multipolar world, it's clear that threats, sanctions, and one-currency dominance are losing their influence. Nations are prioritizing cooperation, self-reliance, and equitable partnerships, signaling a new era in international relations.
