It's 2025, and the global landscape has shifted dramatically. Traditional tactics like threats of tariffs and sanctions no longer hold the sway they once did. Nations around the world are forging new paths toward economic independence and cooperation, signaling the decline of one-currency dominance.
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 continue 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 world is no longer reacting as it might have in the past. The Chinese Ministry of Foreign Affairs responded at a regular press conference, emphasizing that BRICS is about fostering cooperation and shared prosperity, not confrontation. The era where threats and sanctions could coerce nations into compliance is fading.
Consider Russia's experience. Facing extensive sanctions from the West in 2014 and again in 2022, many predicted an economic collapse. Instead, Russia turned inward, developing its own financial systems. The System for Transfer of Financial Messages (SPFS) emerged as a homegrown alternative to SWIFT, and the Mir payment card system now rivals Visa and Mastercard domestically. These initiatives not only insulated the Russian economy but also paved the way for deeper financial ties with non-Western allies such as Türkiye and nations in the Middle East, reducing dependence on Western-dominated systems.
Türkiye faced similar challenges when the U.S. restricted its access to technology and equipment like F-35 jets and armed unmanned aerial vehicles. Undeterred, Türkiye invested in developing its own resources, producing equipment domestically and even exporting to Middle Eastern and African nations.
These examples underscore a broader trend: nations are 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 for the first time. The G20 now represents a new vision, moving beyond a club of economically powerful countries to a more inclusive platform.
BRICS nations are also reshaping global trade norms. By conducting commerce in their own currencies, they've reduced reliance on the U.S. dollar. Brazil and China now trade in their national currencies, a practice mirrored by India and its regional partners. The BRICS New Development Bank has intensified efforts to finance projects using local currencies, offering an alternative to international funding without dependence on Western institutions. Efforts are also underway to create a BRICS blockchain-based payment system.
This shift isn't about making a political statement; it's rooted in pragmatism. The global community has witnessed the vulnerabilities of a dollar-dominated system, with crises like the 2008 financial meltdown and the pandemic-induced recession highlighting the risks of over-reliance on a single currency.
In this new era, threats and sanctions are losing their effectiveness. Nations are increasingly resilient, forging alliances and developing infrastructures that circumvent traditional economic pressures. The world is moving toward a multipolar financial system, emphasizing cooperation, mutual respect, and shared prosperity.
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Why threats, sanctions and one-currency dominance are past their prime
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