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Shifting Sands: BRICS’ Bid to Redraw the Global Financial Map
At last week’s BRICS summit in Kazan, the bloc issued its boldest statement yet, declaring an ambition to reshape a global order long dominated by Western powers. This was the largest international event held in Russia since it invaded Ukraine over two years ago, bringing together representatives from 36 countries.
At the summit, BRICS leaders focused on bolstering trade through a new payment system and a unique shared currency. Spearheaded by China and Russia, this initiative is part of a broader “de-dollarisation” strategy aimed at reducing financial risks tied to US monetary policy and the SWIFT system. By encouraging BRICS countries to conduct trade in their own currencies, the bloc seeks to reduce reliance on the US dollar, thereby lessening the impact of US sanctions and currency fluctuations on their economies. The proposed BRICS payment system would enable currency exchange among member states without involving the dollar or Western financial infrastructure.
BRICS members control a substantial share of the world’s energy resources, and by trading in local currencies, they could reduce global reliance on the US dollar. This shift could lead to fluctuations in the dollar’s value, impacting global investment flows and exchange rates. Additionally, trading in local currencies gives BRICS countries greater control over their pricing and supply chains, which may influence global commodity prices and availability.
By strengthening connections within the bloc, BRICS countries can rely less on Western markets and provide emerging economies with an alternative to Western-dominated trade systems. Diplomatically, a more unified BRICS offers these economies a stronger voice, allowing them to counterbalance Western influence in global institutions like the IMF and UN
As BRICS nations advocate for a multipolar framework—a structure where multiple regions wield significant economic influence—Western countries must adapt to this evolving landscape. As they adapt to a multipolar world, Western countries must balance competition and collaboration, ultimately transforming global alliances and economic approaches.
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