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Here’s why Russia’s BRICS presidency is at a critical crossroads
The upcoming BRICS Summit in Kazan, hosted by Russia from October 22-24, is crucial due to increasing interest from developing nations in joining the group. Following its largest expansion in 2023, tensions over membership could threaten BRICS cohesion. Many countries view BRICS as an alternative to U.S.-led systems, particularly those facing sanctions from the West.
Russia aims to attract more friendly nations to bolster trade and counteract U.S. pressures, while China seeks to enhance its political influence through expansion. However, India and Brazil are wary of being seen as anti-U.S. amid rising tensions, and India may consider exiting BRICS if pro-China dynamics increase.
The summit will address various global crises, with Russia aiming to showcase its relevance despite Western isolation. The outcome will be pivotal for BRICS's future stability and unity.
A new world order in the making: Here’s why this BRICS summit will be special
The upcoming BRICS summit in Kazan, Russia, could change global geopolitics, gathering 24 heads of state, including China's Xi Jinping and UN Secretary-General Antonio Guterres. The summit signals a shift from Western dominance to a multipolar world, with BRICS countries asserting themselves as an alternative to traditional power structures like the IMF and World Bank.
As Global South nations seek to amplify their voices, the summit offers a platform for addressing issues like economy, security, and environmental challenges. Western governments, facing internal divisions, may need to reassess their engagement with emerging markets amid declining confidence in Western institutions.
The summit may redefine multilateralism post-World War II, promoting cooperation among developing countries and envisioning a future where the Global South is heard, potentially signaling the decline of Western supremacy.
BRICS is a response to the ‘odious’ Western system – former Pentagon official
Michael Maloof, a former Pentagon analyst, predicts that the upcoming BRICS summit in Kazan will attract more countries seeking alternatives to the Western-dominated financial system, largely due to U.S. policies. He highlights that the "weaponization" of the dollar and Western sanctions have driven nations, including U.S. allies like Brazil and India, to pursue other economic arrangements. Russia plans to propose a new blockchain-based financial system at the summit, as it has increased the use of national currencies in trade. Over 30 nations are seeking BRICS membership, indicating a shift away from U.S. influence.
Putin and Modi hold talks in Kazan
Russian President Vladimir Putin and Indian Prime Minister Narendra Modi met in Kazan during the BRICS Summit to discuss strengthening bilateral ties and cooperation within BRICS. Putin highlighted the growth in trade between the two nations, which has tripled to around $65 billion, with a goal of reaching $100 billion by 2030. Modi emphasized the need for peaceful resolution of the Ukraine conflict and announced the opening of two new Indian consulates in Russia to boost diplomatic and business ties. This marks Modi's second visit to Russia in three months, amid ongoing scrutiny from Western allies due to India's continued partnership with Moscow.
Ramaphosa urges BRICS partners to invest in Africa’s industrialization
South African President Cyril Ramaphosa urged BRICS nations to aid Africa's industrialization through infrastructure development, speaking ahead of the BRICS Summit in Kazan, Russia. He emphasized collaborative investment's role in maximizing the African Continental Free Trade Area (ACFTA), which aims to boost trade and economic growth. Ramaphosa highlighted the need for investment in infrastructure like roads and telecommunications, as well as support for small businesses and women-owned enterprises. He noted the expanded BRICS group's significant global economic impact and expressed South Africa's commitment to harness its potential. The 16th BRICS Summit will take place from October 22-24.
BRICS not aiming to ‘defeat the dollar’ – Kremlin
Kremlin spokesman Dmitry Peskov stated that BRICS members are not plotting against the US dollar or other currencies, but rather cooperating to serve their own interests. He dismissed Western media claims of a plan to undermine the dollar at this week's BRICS Summit. Peskov emphasized that BRICS cooperation focuses on benefiting member states without targeting any currencies. Russia is also developing a new settlement system, 'BRICS Bridge,' for trade using national currencies, aiming to reduce reliance on the dollar and move away from the SWIFT system, with national currency use in settlements with BRICS countries increasing to 85% from 26% in two years.
India wants to help bring peace to Ukraine – Modi
Indian Prime Minister Narendra Modi expressed New Delhi's readiness to aid in resolving the Russia-Ukraine conflict through diplomacy during talks with President Vladimir Putin on Tuesday at the BRICS Summit. He emphasized that the conflict cannot be settled on the battlefield and highlighted India's ongoing communication with both Russia and Ukraine. Modi reiterated India's commitment to peaceful resolution and its willingness to facilitate peace talks, while maintaining that India has not condemned Russia and continues to engage with both sides.
BRICS to make ‘important decisions’ in Kazan – Putin
At the 16th BRICS Summit in Kazan, Russian President Vladimir Putin emphasized the need for decisions to enhance cooperation among members. He announced discussions with leaders, including Indian Prime Minister Modi, Chinese President Xi Jinping, and South African President Cyril Ramaphosa. BRICS, which recently expanded to include Egypt, Iran, Ethiopia, and the UAE, may also introduce a new 'partner member' status, with 13 countries seeking this designation. The summit aims to propose a new vision of global multilateralism.
UN boss explains importance of BRICS
UN Secretary-General Antonio Guterres is attending the BRICS Summit in Kazan, emphasizing its significance as the bloc represents nearly half of the global population. His spokesman highlighted that Guterres will hold bilateral meetings with various leaders and reaffirm his stance on the Ukraine conflict and Black Sea navigation. The summit, taking place from October 22-24, will also discuss global multilateralism and potential partnerships for new countries interested in joining BRICS, which includes Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the UAE, covering 46% of the world's population and 36% of GDP.
Modi and Xi to meet at BRICS after border deal breakthrough
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi will meet for the first time since 2022 on Wednesday, following a breakthrough in a four-year border stalemate. The meeting will occur at the BRICS Summit in Kazan, Russia. India announced a deal on patrolling arrangements along the Line of Actual Control (LAC) in Eastern Ladakh, reached after several rounds of discussions. China confirmed the agreement, but did not reference specific disputed areas, raising speculation about unresolved issues. Relations have been strained since clashes between their troops, impacting diplomatic and economic ties.
Russia is a valued ally – South African president
South African President Cyril Ramaphosa praised Russia as a "valued ally" during talks with Vladimir Putin at the BRICS Summit in Kazan. Despite external pressures to sever ties over the Ukraine conflict, South Africa maintains close relations with Russia, emphasizing a non-aligned stance and collaboration within the BRICS framework. Putin noted a 3% rise in trade between the countries and highlighted the need for expanded cooperation in various sectors.
India warns against spreading misleading image of BRICS
Prime Minister Narendra Modi emphasized that BRICS is not seeking to replace global institutions but aims to reform them during the group's summit. BRICS, representing 40% of the global population and 30% of the economy, should advance timely reforms in organizations like the UN Security Council and IMF. Modi dismissed Western media claims of an "identity crisis" within BRICS and highlighted India's role in the group's recent expansion. He described BRICS as a diverse platform for addressing global issues such as conflicts, economic challenges, and climate change, advocating for dialogue over war.
Putin proposes new economic strategy for BRICS
Russian President Vladimir Putin proposed a BRICS investment platform at the 16th annual BRICS Summit to enhance economic growth among member countries and the Global South. The platform aims to boost investment in technology, education, trade, and logistics. Established in 2006, BRICS includes Brazil, Russia, India, China, and South Africa, with recent additions of Egypt, Iran, Ethiopia, and the UAE. Current members represent about 46% of the global population and over 36% of GDP.
Xi outlines vision for China-Russia relations
Chinese President Xi Jinping, at the BRICS summit in Kazan, emphasized the need for deeper economic ties with Russia and support for a UN-centered global order during talks with President Vladimir Putin. Xi noted that Sino-Russian relations are thriving despite global turmoil, backed by large-scale joint projects and trade expanding toward a projected record of $82 billion this year. He highlighted the importance of their partnership under the Belt and Road Initiative and the Eurasian Economic Union, asserting that both nations should defend international stability. Kremlin spokesman Dmitry Peskov called the leaders' conversation "constructive" with aligned global views.
Xi and Modi hold talks at BRICS Summit in Russia
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi held their first bilateral meeting in five years at the BRICS Summit in Kazan, Russia, amid efforts to resolve a border standoff. The meeting followed an agreement on patrolling disputed border areas, stemming from clashes in June 2020. Modi highlighted the importance of managing disputes to maintain peace, while Xi called for stronger communication. Both leaders agreed to have special representatives meet soon to oversee the implementation of the latest agreements and explore a mutually acceptable solution to the boundary issue. New Delhi emphasized that positive bilateral relations would benefit regional and global stability.
Multipolar world order, leading role of emerging economies, and Western debt: Key takeaways from Putin’s BRICS address
At the BRICS Summit in Kazan, Russian President Vladimir Putin discussed the group's financial integration and development prospects. He emphasized the shift towards a multipolar world, highlighting BRICS countries' economic stability and projected growth rates of 3.8% for 2024-2025. Putin warned of risks from Western sanctions, protectionism, and rising debt in developed nations. He proposed creating a new BRICS investment platform and a grain exchange to stabilize trade among member states. Additionally, he suggested a BRICS alliance for regulating artificial intelligence and enhancing transport connectivity.
BRICS rejects ‘illegal’ Western sanctions
BRICS countries condemned unlawful sanctions that disrupt the global economy and undermine development, according to the ‘Kazan Declaration’ released at the 16th BRICS Summit in Russia. The declaration highlights the negative impacts of such sanctions on growth, energy, health, and food security, calling for their elimination. Despite Western restrictions on Russia, BRICS members are enhancing economic ties. Western officials note the sanctions are largely ineffective, with limited scope for further restrictions.
New centers of power, sovereign equality and Western coercion: What’s in the BRICS Kazan Declaration
The BRICS nations approved a communique at their summit in Kazan, addressing global crises and calling for a fairer international order.
Putin warns against using dollar for political gain
At the BRICS Summit, Russian President Vladimir Putin criticized the "weaponization" of the US dollar, calling it a mistake that undermines confidence in the currency. His comments followed NDB President Dilma Rousseff's critique of the dollar's political influence. Putin noted that sanctions against Russia have prompted a shift towards alternative currencies for trade, particularly with China. He emphasized that Russia isn't seeking to abandon the dollar but is being forced to find alternatives due to restricted access to the global financial system.
BRICS is a ‘statement’ of changing world order – India
Indian Foreign Minister S. Jaishankar, speaking at the BRICS Summit, called for stronger independent platforms to ensure equal access to development for Global South nations, stating that BRICS represents a shift away from Global North dominance. He highlighted ongoing inequities, linking them to uneven globalization benefits, and advocated for reforming global governance and democratizing the economy by creating more production hubs. Jaishankar also emphasized the need to address colonial-era infrastructure distortions for better connectivity. This speech followed Prime Minister Narendra Modi's bilateral meetings with various leaders. BRICS leaders approved a communique promoting a multipolar world and greater representation for emerging countries in international institutions.
Productivity declining in most of Europe – IMF
The IMF's Alfred Kammer predicts moderate recovery for the EU with GDP growth at 1.7% this year, up from 1.5% last year. He cites fragmentation of markets, inadequate capital markets for supporting startups, and a lack of skilled labor as key challenges. Kammer highlights the stagnant 30% per capita income gap between the EU and the US, particularly affected by low productivity in Central and Eastern Europe. He attributes economic struggles to energy shocks from the Ukraine conflict, while some EU nations, like Hungary and Austria, continue to import Russian gas. The IMF also revised Russia's 2024 growth forecast to 3.6%, despite long-term challenges from sanctions.
EU Council president says bloc must stop ‘lecturing’ world
European Council President Charles Michel urged the EU to stop "lecturing" developing countries and to approach them with more respect. In an interview, he acknowledged that the EU often fails to understand differing perspectives and communicates poorly with these nations. He criticized the bloc's enforcement of standards, calling terms like "yellow card" and "red card" humiliating. His remarks coincided with the BRICS Summit in Russia, where leaders from countries closely tied to the EU are seeking to diversify their alliances. Michel emphasized the need for the EU to adopt a new approach to counter the influence of Russia and China.
‘Idiotic’ to think Russia can be isolated, Serbian Deputy PM tells RT
Serbian Deputy Prime Minister Aleksandar Vulin criticized the West's efforts to isolate Russia, calling such policies "stupid" and a "loser" strategy during an interview at the BRICS 2024 Summit in Kazan. He argued that Russia embodies values—like "God, nation, family"—in demand worldwide, making isolation impossible. Vulin noted that over 40 delegations attended the summit, highlighting Russia's global significance. He stated Serbia seeks to participate in the changing landscape offered by BRICS without facing political pressure, and hinted that a referendum could soon determine Serbia's future alignment between the EU and BRICS.
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EU working to Trump-proof Russia sanctions – Reuters
The EU aims to maintain and enhance sanctions against Russia regardless of the winner of the upcoming US presidential election, amid concerns that Donald Trump could weaken Western efforts if reelected. Reports suggest the EU is considering tighter enforcement measures, including "catch-all" clauses to control suspicious shipments to Russia and extending the freeze on Russian central bank assets from six to 36 months. Approximately $300 billion in Russian assets remain blocked in the EU due to the ongoing conflict with Ukraine. Trump's past withdrawal from agreements has heightened fears in Europe about potential future shifts in US policy towards Russia.
Geopolitical events have a significant impact on the energy and petroleum industry. For instance, BRICS countries are increasingly influencing global economic policies and trade dynamics, which can affect energy markets. Similarly, de-dollarization efforts can lead to shifts in global trade and investment patterns, impacting the energy sector.
The assessment of economic rise and fall cycles spanning 70 to 100 years aligns well with historical evidence. Empires and economies often experience significant growth and decline over these periods. For instance:
The Dutch Golden Age (17th century): The Dutch Republic saw rapid economic growth, driven by trade, finance, and innovation, but eventually faced economic decline due to wars and competition.
The British Empire: At its height in the 19th century, the British Empire was the world's foremost global power, but it gradually declined in the 20th century, leading to decolonization and economic challenges.
The Roman Empire: The Roman Empire experienced centuries of expansion and prosperity, followed by a gradual decline due to internal strife, economic troubles, and external pressures.
These cycles reflect the complex interplay of economic, political, and social factors that drive the rise and fall of dominant powers. The US, with its strategic policies and economic influence, has managed to maintain its dominance longer than many other nations.
Sources:
Sources:
Why BRICS is becoming increasingly appealing to Global South - This article discusses the growing appeal of BRICS to developing nations and its impact on global geopolitics
As BRICS grows, the race is on between China, Russia and the West for global influence - This piece explores the geopolitical race between BRICS nations and Western countries.
BRICS Summit 2024 offers huge opportunity to reset geopolitics - This article highlights the significance of the 2024 BRICS Summit in reshaping global geopolitics.
Past Issues Leading to Shifts in Geopolitical Matters:
Past Issues Leading to Shifts in Geopolitical Matters:
US-China Trade Dominance: The historical trade dominance of the US and its competition with China, including trade wars and tariffs.
Russia's Geopolitical Strategy: Russia's efforts to counter NATO's expansion and its impact on global security dynamics.
Energy and Petroleum Industry: The role of BRICS nations as major energy producers and consumers, and the geopolitical implications of energy trade.
The US Dollar's Dominance: A Masterclass in Economic Strategy
The US Dollar's Dominance: A Masterclass in Economic Strategy
For nearly a century, the US has maintained its economic dominance through strategic policies and the global reliance on the US dollar. This "exorbitant privilege" has allowed the US to borrow at lower costs, import more than it exports, and maintain a high standard of living.
The dollar's role as the primary global reserve currency has provided the US with unparalleled economic and political leverage
The Chess Game of Global Economies
The Chess Game of Global Economies
In contrast, countries like Russia, China, and India are navigating a complex geopolitical landscape. Each nation is employing strategic maneuvers to enhance its economic standing, but these efforts often lead to conflicts of interest. Russia's reliance on China and India for economic partnerships is a testament to its need for allies in the face of Western sanctions. However, this alliance is fraught with tension, as each country prioritizes its own economic interests.
The Fragility of Alliances
The Fragility of Alliances
The BRICS coalition, while powerful, is a marriage of convenience. The economic interests of China, Russia, and India are not always aligned, leading to potential fractures in the alliance. China's aggressive economic policies and Russia's geopolitical ambitions often clash with India's more passive and strategic approach. This dynamic creates a fragile alliance that could unravel in the next 10 to 20 years.
The US Advantage
The US Advantage
The US has mastered the economic timeline, leveraging its position to set global policies and maintain economic dependence on the dollar.
This strategic foresight has allowed the US to navigate economic cycles effectively, maintaining its dominance while other economies rise and fall. The US's ability to adapt and innovate has kept it at the forefront of global economic power.
The Future of Global Economies
The Future of Global Economies
As the world moves towards a multipolar order, the dominance of the US dollar is being challenged. De-dollarization efforts by countries like China and Russia aim to reduce reliance on the dollar, but these efforts face significant hurdles. The stability and trust in the US financial system remain strong, making it difficult for alternative currencies to gain the same level of global acceptance.
Remarks
Remarks
The global economic landscape is a complex chess game, with each nation employing strategies to enhance its position. While the US has maintained its dominance through strategic policies and the global reliance on the dollar, the alliances between countries like China, Russia, and India are fragile and fraught with tension. The future will likely see continued shifts in economic power, but the US's strategic foresight and adaptability will keep it a formidable player on the global stage.
Sources:
(1) The Dollar's Exorbitant Privilege | Research & Policy Center.
(3) De-dollarization: The end of dollar dominance? | J.P. Morgan
The Geopolitical Chessboard: BRICS and Economic Transitions
The Geopolitical Chessboard: BRICS and Economic Transitions
Throughout history, dominant economies have risen and fallen in cycles of 70 to 100 years. The Dutch Golden Age, the British Empire, and the Roman Empire are prime examples. Today, the US has leveraged strategic policies and global reliance on the dollar to maintain its dominance. However, the global landscape is evolving, and BRICS (Brazil, Russia, India, China, and South Africa) is emerging as a formidable coalition challenging the status quo.
The Players and Their Strategies
The Players and Their Strategies
China: The world’s second-largest economy, China is a key player in BRICS. With its aggressive economic policies and vast market, China aims to reshape global trade and economic policies in its favor. It also seeks to reduce reliance on the US dollar through initiatives like the BRICS Pay system.
Russia: Facing economic sanctions, Russia seeks to strengthen ties with China and India. These alliances are crucial for Russia’s economic survival and its geopolitical strategy to counter Western influence. Russia's vast energy resources make it a vital partner within BRICS.
India: Playing a delicate balancing act, India maintains strong ties with both Western countries and its BRICS partners. Its strategy focuses on long-term sustainable growth through infrastructure development and innovation. India’s cautious approach aims to leverage its relationships for economic and geopolitical gains.
Brazil: Brazil’s vast natural resources and agricultural sector position it as a critical player within BRICS. Its economic strategy focuses on leveraging these resources to boost trade and investment.
South Africa: As a key player in Africa, South Africa’s role within BRICS involves leveraging its mineral resources and strategic location to enhance trade and investment. The country’s energy sector transformation is crucial for its economic development.
The BRICS Dynamics
The BRICS Dynamics
The BRICS coalition is a marriage of convenience, with each nation prioritizing its own economic interests. While this alliance aims to counterbalance the influence of the US, internal conflicts and divergent goals pose significant challenges. Russia's reliance on China and India highlights its need for strong allies, but these relationships are fraught with tension due to competing interests and strategic maneuvers.The relationships between China, Russia, and India are indeed complex and multifaceted. Each country is pursuing its own economic interests, often leading to strategic maneuvers reminiscent of a high-stakes chess game. Russia, in particular, has been seeking to strengthen its ties with both China and India, especially through platforms like BRICS. This partnership is crucial for Russia as it navigates its economic and political challenges, particularly in light of its strained relations with the West. The relationship between Russia and China has been under some strain recently, particularly due to the economic sanctions imposed on Russia. These sanctions have forced Russia to seek alternative payment systems, leading to the proposal of the BRICS Pay system, which aims to bypass the traditional Western-dominated financial system's. India, on the other hand, has been taking a more measured and strategic approach to achieving its goals. While it may seem passive at times, India is focusing on long-term sustainable growth through infrastructure development, innovation, and inclusive policies. This approach is aimed at doubling its economy by 2030 and avoiding the middle-income trap.
The Petrodollar system, where oil is priced and traded in US dollars, has been a cornerstone of global economic and geopolitical dynamics for decades. However, recent shifts are challenging this dominance, with significant implications for BRICS and global geopolitics
Impact on BRICS
Impact on BRICS
De-dollarization Efforts: BRICS nations, particularly China and Russia, are actively seeking alternatives to the US dollar. This includes exploring the use of local currencies for trade and investment within the bloc. The goal is to reduce dependence on the dollar and mitigate the risks associated with US sanctions and economic policies.
New Financial Systems: BRICS is pushing for the creation of new financial systems, such as a blockchain-based payment system and a potential BRICS currency backed by natural resources. This would further reduce reliance on the petrodollar and enhance economic independence.
Energy Cooperation: The inclusion of new BRICS members like Saudi Arabia, UAE, and Iran strengthens the bloc's influence in the energy sector. These countries can help stabilize global energy prices and diversify energy sources, reducing the impact of petrodollar fluctuations.
Geopolitical Shifts
Geopolitical Shifts
Multipolar World Order: The weakening of the petrodollar signals a shift from a unipolar global order dominated by the US to a more multipolar world. This transition is driven by the growing influence of BRICS nations and their efforts to challenge the existing financial system.
Strategic Alliances: Countries that have traditionally relied on the petrodollar are seeking closer ties with alternative power centers, such as BRICS. This reshapes geopolitical alliances and diminishes the US's influence in global affairs.
Economic Independence: Nations are increasingly looking to diversify their economic partnerships and reduce dependence on the US dollar. This includes exploring alternative currencies for oil transactions and other trade activities.
The decline of the petrodollar system has significant implications for the US and G7 nations, as it challenges their economic dominance and shifts the balance of power towards BRICS nations
Impact on the US
Impact on the US
Reduced Economic Leverage: The US has historically benefited from the petrodollar system, which created a consistent demand for the US dollar. As countries move away from the dollar, the US loses this economic leverage, making it harder to finance its trade deficits and government spending.
Increased Competition: The rise of alternative currencies and payment systems, such as those proposed by BRICS, increases competition for the US dollar. This can lead to higher borrowing costs and reduced global influence.
Geopolitical Shifts: The decline of the petrodollar weakens the US's ability to impose economic sanctions and exert geopolitical pressure on other nations. This diminishes its control over global financial systems and trade dynamics.
Impact on G7 Nations
Impact on G7 Nations
Economic Uncertainty: G7 nations, which include the US, Canada, France, Germany, Italy, Japan, and the United Kingdom, face economic uncertainty as the global financial system becomes more multipolar. This can lead to volatility in currency markets and trade relations.
Strategic Alliances: G7 nations may need to form new strategic alliances and partnerships to counterbalance the growing influence of BRICS. This could involve closer cooperation on economic policies, trade agreements, and security measures.
Adaptation to New Norms: G7 nations will need to adapt to the new norms of a multipolar world, where economic power is more evenly distributed. This may require reforms in international financial institutions and trade policies to reflect the changing global landscape.
Key takeaways:
Key takeaways:
The petrodollar system faces significant challenges as BRICS nations and other global players push for economic independence, ushering in a more multipolar world order. These efforts are reshaping geopolitical alliances and creating new opportunities for collaboration and growth within the BRICS bloc and beyond. As BRICS nations gain influence and challenge the dominance of the US and G7 nations, this transition demands strategic adaptation and cooperation to navigate the complexities of the evolving global landscape. However, many nations and economies, such as Saudi Arabia, other OPEC members, Russia, China, and various European countries, still heavily rely on the petrodollar, adding another layer of complexity to this shift.
Sources:
(1) What Is a Petrodollar and How Does It Affect the Global Economy? | Market Pulse
(2) Emerging Threats to Petrodollar: A shift in Geopolitics of Oil - The Geopolitics
(3) How Would a New BRICS Currency Affect the US Dollar? (Updated 2024) | INN
(4) BRICS nations push for greater financial integration through local currencies
(5) Challenges to Petrodollar Dominance: The Evolving Geopolitics of Oil - Stratheia
(6) De-dollarisation: shifting power between the US and BRICS | Lowy Institute
Trap for the West: Why BRICS cannot be dismissed any longer
Trap for the West: Why BRICS cannot be dismissed any longer
The BRICS summit in Kazan signaled a potential shift away from the US-led international order, as emerging economies criticized unilateral sanctions and called for reforms in global governance. The gathering, which included seven new members, showcased a united front against perceived Western dominance and highlighted issues like the Ukraine conflict and Israel's military actions. Despite differences among member states, there is a shared frustration with historical Western biases and a push for greater representation in global institutions. The summit's Declaration emphasized sovereignty, including support for Palestine's UN membership and opposition to foreign military presence in Syria. As BRICS establishes itself as a platform for non-Western voices, the West must engage more proactively to avoid escalating tensions in a multipolar world.
The BRICS summit in Kazan signaled a potential shift away from the US-led international order, as emerging economies criticized unilateral sanctions and called for reforms in global governance. The gathering, which included seven new members, showcased a united front against perceived Western dominance and highlighted issues like the Ukraine conflict and Israel's military actions. Despite differences among member states, there is a shared frustration with historical Western biases and a push for greater representation in global institutions. The summit's Declaration emphasized sovereignty, including support for Palestine's UN membership and opposition to foreign military presence in Syria. As BRICS establishes itself as a platform for non-Western voices, the West must engage more proactively to avoid escalating tensions in a multipolar world.
Update
The BRICS Kazan Declaration: A manifesto of the new world order
The BRICS Kazan Declaration: A manifesto of the new world order
The Kazan Declaration, adopted by BRICS leaders, features 134 paragraphs outlining a unified vision for the current international system, marking a significant increase in detail from previous summits. The document focuses on strengthening multilateralism, global security, financial cooperation, and humanitarian exchanges. It aims to balance security and development agendas while addressing the need for reform in Western-dominated institutions and promoting alternatives like the New Development Bank. Sensitive issues, such as the Ukraine conflict, are carefully worded to maintain consensus among diverse members. Overall, the Kazan Declaration positions BRICS for a more prominent role in global governance, attracting both interest and criticism as its members prepare for the next summit in Brazil.
The Kazan Declaration, adopted by BRICS leaders, features 134 paragraphs outlining a unified vision for the current international system, marking a significant increase in detail from previous summits. The document focuses on strengthening multilateralism, global security, financial cooperation, and humanitarian exchanges. It aims to balance security and development agendas while addressing the need for reform in Western-dominated institutions and promoting alternatives like the New Development Bank. Sensitive issues, such as the Ukraine conflict, are carefully worded to maintain consensus among diverse members. Overall, the Kazan Declaration positions BRICS for a more prominent role in global governance, attracting both interest and criticism as its members prepare for the next summit in Brazil.
Update
Fyodor Lukyanov: BRICS shows us where the world is heading
Fyodor Lukyanov: BRICS shows us where the world is heading
The BRICS Summit in Kazan marked a significant evolution for the group, which now includes a diverse range of countries. The expanded format demonstrated the challenges of managing such a large coalition, emphasizing the need for greater institutionalization alongside community expansion.
The BRICS Summit in Kazan marked a significant evolution for the group, which now includes a diverse range of countries. The expanded format demonstrated the challenges of managing such a large coalition, emphasizing the need for greater institutionalization alongside community expansion.
While the summit addressed pressing issues, including a unified stance on Ukraine, it primarily focused on improving existing global institutions rather than radical changes. The discussions highlighted a global shift away from U.S. monetary hegemony, acknowledging the complexity of transitioning to alternative financial systems.
While the summit addressed pressing issues, including a unified stance on Ukraine, it primarily focused on improving existing global institutions rather than radical changes. The discussions highlighted a global shift away from U.S. monetary hegemony, acknowledging the complexity of transitioning to alternative financial systems.
Importantly, BRICS members reject the notion that they are creating an anti-Western bloc; most are not interested in conflict with the West but seek diversification and opportunities to reduce dependence on it. Ultimately, the summit signifies a notable step in reshaping global dynamics, steering towards a multipolar system.
Importantly, BRICS members reject the notion that they are creating an anti-Western bloc; most are not interested in conflict with the West but seek diversification and opportunities to reduce dependence on it. Ultimately, the summit signifies a notable step in reshaping global dynamics, steering towards a multipolar system.
Update
The West is in denial about BRICS
The West is in denial about BRICS
The 16th BRICS Summit in Kazan marked a turning point for the organization, aiming to reshape the international order amid rising divides between the West and the Global South. New members Algeria, Uganda, Nigeria, and partner countries from Latin America and ASEAN were added, highlighting Africa's increasing global role. The summit adopted the Kazan Declaration, advocating for a more representative global governance structure, particularly in institutions like the UN, IMF, and World Bank. While the summit aims for a multipolar world, its success depends on maintaining cohesion among diverse member interests, avoiding anti-Western stances while promoting a non-Western narrative in global politics.
The 16th BRICS Summit in Kazan marked a turning point for the organization, aiming to reshape the international order amid rising divides between the West and the Global South. New members Algeria, Uganda, Nigeria, and partner countries from Latin America and ASEAN were added, highlighting Africa's increasing global role. The summit adopted the Kazan Declaration, advocating for a more representative global governance structure, particularly in institutions like the UN, IMF, and World Bank. While the summit aims for a multipolar world, its success depends on maintaining cohesion among diverse member interests, avoiding anti-Western stances while promoting a non-Western narrative in global politics.
Update
South Africa boosting defense ties with Russia
South Africa boosting defense ties with Russia
A South African delegation, led by General Rudzani Maphwanya, met with Russian military officials in Moscow to strengthen military relations. They discussed strategic partnerships and agreed on measures to enhance cooperation in various areas. The visit included a ceremonial wreath-laying and tours of military institutions and historical sites. Last year, Russia and South Africa began joint military projects, including a helicopter repair service.
A South African delegation, led by General Rudzani Maphwanya, met with Russian military officials in Moscow to strengthen military relations. They discussed strategic partnerships and agreed on measures to enhance cooperation in various areas. The visit included a ceremonial wreath-laying and tours of military institutions and historical sites. Last year, Russia and South Africa began joint military projects, including a helicopter repair service.
Update
Indian banks fear US sanctions – Russian ambassador
Indian banks fear US sanctions – Russian ambassador
Washington is closely monitoring trade between Moscow and New Delhi, as Indian banks express caution in settling transactions with Russian clients due to potential secondary US sanctions, according to Russia's ambassador Denis Alipov. These sanctions could affect foreign banks involved with major Russian lenders. Moscow and New Delhi are working to establish a direct trade payment system in rubles and rupees, with meetings planned for November to enhance bilateral trade. Despite US pressure, India has increased its purchases of Russian oil, making it Moscow's largest buyer, with trade turnover exceeding $65 billion in 2023, compared to $10-13 billion annually before 2022. The two nations aim to achieve $100 billion in mutual trade by 2030.
Washington is closely monitoring trade between Moscow and New Delhi, as Indian banks express caution in settling transactions with Russian clients due to potential secondary US sanctions, according to Russia's ambassador Denis Alipov. These sanctions could affect foreign banks involved with major Russian lenders. Moscow and New Delhi are working to establish a direct trade payment system in rubles and rupees, with meetings planned for November to enhance bilateral trade. Despite US pressure, India has increased its purchases of Russian oil, making it Moscow's largest buyer, with trade turnover exceeding $65 billion in 2023, compared to $10-13 billion annually before 2022. The two nations aim to achieve $100 billion in mutual trade by 2030.
Update
World now has three superpowers — retired top US general
Retired US General Mark Milley announced that the world has shifted from a unipolar to a multipolar landscape, with the US, Russia, and China as superpowers. Speaking at the American Bankers Association, he emphasized the need for US leaders to recognize China's growth and military ambitions as significant challenges. Milley labeled Russia an "acute threat" due to its nuclear arsenal and ongoing conflict in Europe. He stressed the importance of maintaining a "rules-based order" to prevent a return to a "might makes right" mentality. In response, Russian President Vladimir Putin criticized the US for exploiting this order and called for a more democratic, multipolar global system.
China assesses relations with Russia
Chinese Foreign Minister Wang Yi stated that growing ties between Moscow and Beijing contribute to global stability. During a meeting with Russian Deputy Foreign Minister Andrey Rudenko in Beijing, he emphasized the stable development of bilateral relations, driven by internal dynamics, unaffected by external factors. Wang called for enhanced strategic cooperation, highlighting the two nations' collaboration in international stability and law. Rudenko remarked that ties are at their best historically. Despite Western sanctions, Russian-Chinese trade reached $82 billion in the first nine months of the year, marking 75 years of diplomatic relations.
Assessment: The strong and stable relationship between China and Russia contributes to global stability by promoting cooperation and mutual support on international issues. Their collaboration helps uphold international laws and the UN Charter, which is beneficial for global peace and security.
Moreover, the economic ties between the two countries, despite Western sanctions, demonstrate resilience and a commitment to maintaining strong bilateral relations. This partnership can serve as a stabilizing force in international relations, especially during times of global uncertainty.
Africa has something China and the West need, but will it profit?
Africa's critical minerals market, particularly lithium, is seeing heightened competition between Western and Chinese investors. The continent is crucial for global lithium supply, with the Democratic Republic of the Congo holding the majority of reserves. While prices soared to $70,000 per ton in late 2022, they have since stabilized around $10,000, maintaining long-term demand. Zimbabwe currently leads in lithium production, with significant Chinese investment, but several West African nations are emerging in the sector.
As nations establish regulatory frameworks, it's vital to avoid past mistakes seen in oil and gas industries. Some countries are implementing bans on raw ore exports to promote local processing and economic diversification. The growth of the critical minerals market presents a chance for African nations to improve infrastructure and technology transfer, contingent on effective regulations and skilled governance.
Assessment: Africa’s critical minerals market, particularly lithium, is witnessing intense competition between Western and Chinese investors. The continent, with substantial reserves in the Democratic Republic of the Congo and Zimbabwe, is pivotal for global lithium supply. While prices have stabilized around $10,000 per ton, the demand remains robust. This surge in interest presents both opportunities and challenges, as African nations strive to leverage their resources effectively.
On the positive side, increased investment can spur economic growth, create jobs, and drive infrastructure development. Promoting local processing adds value domestically, helping countries capture more benefits from their resources. Furthermore, diversifying into critical minerals can reduce reliance on traditional sectors like oil and gas, fostering a more resilient economy. However, these developments also bring risks. Resource nationalism and protectionist policies could deter foreign investment. Environmental impacts of mining must be carefully managed, and geopolitical tensions may arise as countries vie for control.
For Africa to truly benefit, strategic long-term planning and solid business acumen are essential. Effective regulations, transparent governance, and regional collaboration are crucial. African nations must learn from past mistakes and ensure that the growth of the critical minerals market leads to sustainable economic development. By adopting these strategies, Africa can transform its vast mineral wealth into lasting prosperity.
BRICS to outpace G7 in global exports share – report
The BRICS group could surpass the G7 in global merchandise exports by 2026, currently holding 23.3% of the market, according to Ernst & Young India. Their share has grown from 10.7% in 2000, while the G7's share has declined from 45.1% to 28.9%. The report highlights BRICS' dominance in textiles and high technology exports, indicating a shift towards more advanced products. With a growing economic influence, BRICS nations are positioning themselves to challenge G7 leadership in global trade and potentially reduce the dominance of the US dollar. BRICS, established in 2006 and now expanded to include four new countries, contributes 36.7% to global growth in terms of purchasing power parity (PPP), while the G7's share has fallen from 50.42% in 1982 to 29% in 2024.
Assessment: BRICS is fostering a positive shift in the global economic landscape. By promoting a more balanced distribution of trade and resources, they are enabling less dominant economies to access greater opportunities. This shift has the potential to foster global economic stability and growth, benefiting a wider range of nations and communities.
This rise in BRICS' influence can lead to a more inclusive global economy, reducing the monopoly of traditional powers and creating space for diverse economic players to thrive. This, in turn, can lead to more equitable profit-sharing and improved standards of living worldwide. While the rise of BRICS presents challenges, it also offers opportunities for global economic growth and development. By embracing these changes and adapting strategies, G7 nations can navigate the evolving global landscape effectively.
Russia and African state discuss launching maritime cargo line
Russia is negotiating with Tanzania to establish a maritime cargo line, according to Economic Development Minister Maksim Reshetnikov at the Russia-Tanzania Business Forum. He emphasized Tanzania's strategic location in the Indian Ocean as a gateway for Russian products to Africa and proposed phased development due to current port capacity limitations. A Russia-Africa fund will partially finance the initiative, with further investment from the private sector. Additionally, direct charter flights between the two countries are set to resume, aiming to boost tourism and trade. Prior to the 2021 flight suspension, around 6,300 Russians visited Tanzania in 2019.
Assessment: The proposed maritime cargo line between Russia and Tanzania is a strategic initiative aimed at boosting economic ties and trade between the two nations. By leveraging Tanzania's strategic location in the Indian Ocean, this route can serve as a critical gateway for Russian products to enter African markets. The phased development of port facilities, despite current capacity limitations, ensures a gradual and sustainable growth approach, backed by both a Russia-Africa fund and private sector investment.
This collaboration goes beyond trade. The resumption of direct charter flights between the two countries aims to revitalize tourism, which saw significant Russian interest before its suspension in 2021. Enhanced connectivity will not only bolster tourism but also strengthen cultural and economic ties, fostering a deeper relationship between Russia and Tanzania.
In a broader context, this partnership represents a shift towards more diversified global relations, reducing dependence on traditional Western partnerships. It underscores the importance of international cooperation and mutual benefit, setting a precedent for other nations to follow. The potential for infrastructure improvements and technology transfers in Tanzania, fueled by this initiative, highlights the positive impacts of such strategic alliances.
We're witnessing a transformative era where cooperation and mutual respect among nations are paramount. By embracing international trade and partnerships like those between Russia and Tanzania, we foster global interdependence that can lead to greater stability and peace. Collaboration over competition—it’s the way forward for a truly global community.
South Korea eyes a rich BRICS road to the Global South
South Korea eyes a rich BRICS road to the Global South
S Korea’s alignment with US-led West precludes formal accession but active engagement with bloc will bolster its status in emerging multipolar order.In 2024, the BRICS nations continue to consolidate their influence in the global arena, collectively accounting for over 40% of the world’s population and approximately 30% of global GDP in purchasing power parity terms.
According to recent IMF projections, BRICS countries are set to contribute over 50% of global GDP growth in the coming years, underscoring their increasing weight in the international economic landscape.
Russian energy imports to EU nation hit record high
Russian energy imports to EU nation hit record high
Hungary imported 6.2 billion cubic meters of Russian gas via the TurkStream pipeline in 2024, marking a record volume, according to Foreign Minister Peter Szijjarto. He made this announcement after meeting with Russian Foreign Minister Sergey Lavrov at the II Minsk International Conference. Szijjarto emphasized that Russia is a reliable energy supplier, ensuring Hungary's energy security despite EU sanctions. Hungary receives over half its gas from Russia under a 15-year contract with Gazprom and has criticized EU plans to phase out Russian gas by 2028, warning it may veto related sanctions.
Hungary imported 6.2 billion cubic meters of Russian gas via the TurkStream pipeline in 2024, marking a record volume, according to Foreign Minister Peter Szijjarto. He made this announcement after meeting with Russian Foreign Minister Sergey Lavrov at the II Minsk International Conference. Szijjarto emphasized that Russia is a reliable energy supplier, ensuring Hungary's energy security despite EU sanctions. Hungary receives over half its gas from Russia under a 15-year contract with Gazprom and has criticized EU plans to phase out Russian gas by 2028, warning it may veto related sanctions.
Assessment: Hungary's strong reliance on Russian gas, despite EU sanctions, highlights the nation's focus on securing stable and cost-effective energy supplies. While this strategy ensures Hungary's energy security and economic stability, it also risks isolation from other EU countries. The steadfast approach underscores the complexities of balancing national interests with broader geopolitical dynamics, especially as the EU aims to reduce dependency on Russian energy.
On the positive side, Hungary's partnership with Russia provides a reliable energy source, crucial for maintaining economic growth. However, this dependency could be problematic if geopolitical tensions escalate or if the relationship with Russia deteriorates. Hungary’s future strategy must carefully navigate these risks, ensuring they don’t end up “eating bones without meat” should their current energy supply falter.
US sanctions Indian companies for ‘enabling’ Russian military
US sanctions Indian companies for ‘enabling’ Russian military
The US has sanctioned 19 Indian entities and individuals for supplying components used in Russia's weapon systems against Ukraine. Among those targeted are Ascend Aviation and Mask Trans, accused of providing US-made aircraft parts. Additionally, the US Treasury sanctioned 14 Indian firms for delivering "dual-use" items to Russia. In total, nearly 400 entities from multiple countries were sanctioned. India's Foreign Ministry has not yet responded, while China condemned the measures as "illegal." The US has previously sanctioned Indian firms for ties to Russian defense in the ongoing conflict.
The US has sanctioned 19 Indian entities and individuals for supplying components used in Russia's weapon systems against Ukraine. Among those targeted are Ascend Aviation and Mask Trans, accused of providing US-made aircraft parts. Additionally, the US Treasury sanctioned 14 Indian firms for delivering "dual-use" items to Russia. In total, nearly 400 entities from multiple countries were sanctioned. India's Foreign Ministry has not yet responded, while China condemned the measures as "illegal." The US has previously sanctioned Indian firms for ties to Russian defense in the ongoing conflict.
Assessment:
The recent US sanctions on 19 Indian companies for allegedly aiding Russia's military efforts against Ukraine highlight the growing global tensions and the complexities of international trade compliance. These sanctions, which also target entities from other countries, underscore the challenges faced by companies navigating the geopolitical landscape. India's Foreign Ministry has yet to respond, while China has condemned the measures as illegal.
This situation is particularly disconcerting for India, which traditionally maintains a non-aggressive foreign policy. The economic rifts caused by such sanctions can strain international relations and impact global trade dynamics. Ultimately, each country aims to establish a stable and growing economy, increasing their global reach and output.
BRICS vs ‘White Man’s Burden’: The era of ‘civilizing the savages’ is over
The recent BRICS summit in Kazan symbolizes a shift away from Eurocentrism, challenging Western dominance. The alliance promotes a multipolar world where diverse civilizations can coexist independently. Pioneering anthropologist Franz Boas and contemporary philosopher Alexander Dugin both reject cultural and geopolitical superiority, advocating for the recognition of cultural and civilizational pluralism. They oppose the racist ideologies underpinning historical imperialism and modern Western dominance, with Dugin's multipolarity echoing Boas’ call for cultural relativism. The rise of BRICS signifies a demand for respect and legitimacy of diverse political systems, presenting an alternative to Western models and fostering a global consciousness that celebrates diversity over homogenization.
Capital coming from BRICS to Nigeria surges to $1.27 billion
Capital coming from BRICS to Nigeria surges to $1.27 billion
Foreign capital inflow into Nigeria from members of the BRICS nations has experienced a significant increase in the last fiscal years ending June 2024.
Capital inflow from BRICS nations into Nigeria has increased significantly.
Nigeria is open to strategic alliances with BRICS nations despite not being a member state.
New agreements with China, including Belt and Road Initiative projects, are expected to aid Nigeria's infrastructure development.
As seen on Sputnik, Nigeria’s capital inflow from BRICS jumped from $438.72 million in the year ending June 2023, to $1.27 billion by June 2024.
This was revealed by the vice president of the country, Kashim Shettima, during the 2024 China-Africa Inter-Bank Association Forum that was held in the country’s capital Abuja on Wednesday.
“Nigeria has always been open to strategic alliances that support our domestic growth goals. This explains our active engagement with the BRICS nations, even as a non-member state, as seen in our participation in the BRICS Summit held in South Africa last year," the vice president stated.
africa.businessinsider.com/local/markets/nigerias-brics-capital-inflow-surge
De-Dollarization: Countries That Are Cutting Ties with the US Dollar
De-Dollarization: Countries That Are Cutting Ties with the US Dollar
The US dollar has reigned as the world’s reserve currency for quite some time now. In order to bring the dollar out of this dominant position, several nations have been opting for the de-dollarization initiative. In recent years, there has been a growing push for de-dollarization. Countries seek to reduce their excessive dependence on the US dollar and boost their economic independence by diversifying their currency reserves and engaging in commerce in other currencies.
The US dollar has reigned as the world’s reserve currency for quite some time now. In order to bring the dollar out of this dominant position, several nations have been opting for the de-dollarization initiative. In recent years, there has been a growing push for de-dollarization. Countries seek to reduce their excessive dependence on the US dollar and boost their economic independence by diversifying their currency reserves and engaging in commerce in other currencies.
Trump’s threat to South Africa and other BRICS nations
Trump’s threat to South Africa and other BRICS nations
US President-elect Donald Trump warned the so-called BRICS nations that he would require commitments that they would not move to create a new currency as an alternative to using the US dollar and repeated threats to levy a 100% tariff.
“The idea that the BRICS Countries are trying to move away from the dollar while we stand by and watch is OVER,” Trump said in a post to his Truth Social network on Saturday.
“We require a commitment from these Countries that they will neither create a new BRICS Currency nor back any other Currency to replace the mighty U.S. Dollar, or they will face 100% Tariffs and should expect to say goodbye to selling into the wonderful U.S. Economy,” he added.
Trump on his campaign trail pledged that he would make it costly for countries to move away from the US dollar. And he’s threatened to use tariffs to ensure they complied.
Saturday’s threat took on new relevance as the president-elect prepares to retake power in January.
Trump and his economic advisers have been discussing ways to punish allies and adversaries alike who seek to engage in bilateral trade in currencies other than the dollar.
The measures include considering options such as export controls, currency manipulation charges and levies on trade, Bloomberg News reported in April.
Trump has long stressed that he wants the US dollar to remain the world’s reserve currency.
BRICS member Russia confirmed that it has settled 80% of trade with its neighboring country Kazakhstan in local currencies and not the US dollar. Russian President Vladimir Putin confirmed the development saying that both nations have agreed to strengthen their trade ties.
BRICS member Russia confirmed that it has settled 80% of trade with its neighboring country Kazakhstan in local currencies and not the US dollar. Russian President Vladimir Putin confirmed the development saying that both nations have agreed to strengthen their trade ties.
Russia and Kazakhstan are part of the Commonwealth of Independent States (CIS) bloc which consists of 12 countries. The CIS alliance countries include Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine, and Uzbekistan. Therefore, Russia is pushing the de-dollarization agenda to both BRICS and the CIS alliance simultaneously making local currencies stronger and the US dollar weaker.
BRICS currency: Is Trump's tariff threat justified?
BRICS currency: Is Trump's tariff threat justified?
President-elect Donald Trump has warned BRICS nations of 100% tariffs over plans for a new currency to challenge the US dollar. DW examines why these economies are taking on the world’s reserve currency.
Why does BRICS want to challenge the US dollar?
Why does BRICS want to challenge the US dollar?
The BRICS nations — named after original members Brazil, Russia, India, China and South Africa — are among the fast-growing economies in the 21st century. They are keen to reduce their dependence on the US dollar, the world's reserve currency, used for nearly 80% of global trade.
Most economists agree that the dollar-dominated financial system gives the United States major economic advantages, including lower borrowing costs, the ability to sustain larger fiscal deficits and exchange-rate stability, among others.
The dollar is the main currency used to price commodities like oil and gold, and its stability means investors often flock to the dollar during uncertain times.
Washington also benefits from enormous geopolitical influence from so-called dollarization, including the ability to impose sanctions on other nations and restrict their access to trade and capital.
BRICS nations, which expanded recently to include Iran, Egypt, Ethiopia, and the United Arab Emirates, have accused Washington of "weaponizing" the dollar, leveraging the currency so that rivals must operate within a framework defined by US interests.
Discussions about a new joint currency gained traction after the US and European Union imposed sanctions on Russia over its 2022 full-scale invasion of Ukraine, amid concerns other BRICS nations could be targeted if they fell out with the West.
How has the BRICS currency plan developed?
How has the BRICS currency plan developed?
The creation of a BRICS currency was first mooted shortly after the 2008/9 financial crisis, when a US real estate boom and poor regulations nearly collapsed the entire global banking system.
At last year's BRICS summit in South Africa, the bloc agreed to study the possibility of creating a common currency to minimize exposure to dollar-related risks, although BRICS leaders noted it would likely take many years to come to fruition.
Russian President Vladimir Putin went further during the most recent BRICS summit in Kasan in October, proposing a blockchain-based international payments system, designed to circumvent Western sanctions.
There was little enthusiasm for Putin's plan, but BRICS leaders did agree to facilitate more trade in local currencies, cutting their reliance on the dollar.
Putin and his Brazilian counterpart Luiz Inacio Lula da Silva are the strongest proponents of the new currency. While China has not explicitly expressed a view, Beijing has supported initiatives to reduce reliance on the dollar. India, meanwhile, is a lot more cautious about the idea.
www.dw.com/en/trump-threatens-100-tariffs-on-brics-over-new-currency-plans
BRICS: Global Global US Dollar Payments Fall Below 50%
BRICS: Global Global US Dollar Payments Fall Below 50%
There is no doubt that the US dollar dominates global payments, but the scale and size of its transactions are shrinking lately. A handful of developing countries are cutting ties with the US dollar accusing the White House of weaponizing the currency. BRICS kick-started the de-dollarization agenda to challenge US supremacy and bring the dollar down from the world’s reserve currency status.
watcher.guru/news/top-economist-predicts-the-future-of-brics-currency
https://watcher.guru/news/brics-countries-react-to-trumps-100-tariff-threats
BRICS, Bitcoin, and the Dollar: Vladimir Putin Weighs in
BRICS, Bitcoin, and the Dollar: Vladimir Putin Weighs in
Key Takeaways
President Vladimir Putin has fired back at Donald Trump’s threats of huge tariffs on BRICS countries if they create a common currency.
Russia has been exploring financial alternatives to decrease its reliance on the dollar.
BRICS has been in discussions to create an alternative currency amid increased Western sanctions.
President Vladimir Putin has claimed Russia never refused the U.S. dollar and was instead pushed out of it – as the nation continues to look for alternatives to the world’s dominant reserve currency.
The comments fire back at President-elect Donald Trump’s threats to impose 100% tariffs on BRIC countries attempting to create a rival currency.
Putin Fires Back at Dollar
Putin Fires Back at Dollar
In a speech at the Valdai Discussion Club, a Moscow think tank, Putin claimed that Russia did not reject the dollar and had no intention of it.
“We were merely denied of using the dollar as the payment instrument,” he said.
The Russian president noted this was “very foolish from U.S. financial authorities because its entire power, to date, rests on the dollar.”
Putin highlighted that during the four years Trump has been out of office, his successors had “done a great deal to undermine the fundamental foundations of the dollar as a global reserve currency.”
In Putin’s eyes, the Biden administration began to use the dollar as a political weapon against their adversaries.
This, the Russian President believes, has even prompted U.S. allies to “reduce their gold and foreign exchange reserves in dollars and euros.”
With increasing sanctions and a tightening economic climate, Russia has been exploring new financial alternatives to help cushion the blow.
New currency for South Africa, Russia and China bites the dust
New currency for South Africa, Russia and China bites the dust
India’s Reserve Bank is the latest authority to wholly dismiss talk of a new BRICS currency being developed to challenge the US dollar, following threats from US president-elect Donald Trump to retaliate against the bloc for considering the idea.
There has been no decision by the so-called BRICS block about creating a common currency to reduce usage of the dollar, India’s central bank chief said.
“BRICS currency was an idea raised by one of the members and was discussed but no decision has been taken,” Reserve Bank of India Governor Shaktikanta Das said in a post-policy briefing on Friday.
“The geographical spread of the countries has also to be kept in mind, unlike the euro zone which has geographical contiguity.”
The comments come after US President-elect Donald Trump recently warned BRICS nations that he would require commitments that they would not move to create a new currency as an alternative to the dollar and reiterated threats to levy a 100% tariff.
India has been attempting to encourage the use of the rupee in cross-border payments as it seeks to reduce reliance on the dollar.
The move is part of Prime Minister Narendra Modi’s efforts to boost India’s presence on the global stage and position the country as a manufacturing alternative to China in the post-Covid era.
“There is no step we have taken to de-dollarize,” Das said. “We want to derisk Indian trade as dependence on one currency can be problematic at times because of appreciation or depreciation.”
The BRICS group of emerging-market nations — the acronym stands for Brazil, Russia, India, China and South Africa — expanded this year to include Iran, the United Arab Emirates, Ethiopia and Egypt. It discussed the issue of de-dollarization at a summit in 2023.
South Africa Denies BRICS Currency Plans Amidst U.S. Tariff Threats
South Africa Denies BRICS Currency Plans Amidst U.S. Tariff Threats
South Africa’s government has refuted claims of plans to establish a BRICS currency, following U.S. President-elect Donald Trump’s threat to impose 100% tariffs on BRICS nations pursuing an alternative to the U.S. dollar.
South Africa’s government has refuted claims of plans to establish a BRICS currency, following U.S. President-elect Donald Trump’s threat to impose 100% tariffs on BRICS nations pursuing an alternative to the U.S. dollar.
Chrispin Phiri, spokesperson for South Africa’s Department of International Relations and Cooperation (DIRCO), clarified on social media: “Recent misreporting has led to the incorrect narrative that BRICS is planning to create a new currency. This is not the case. The discussions within BRICS focus on trading among member countries using their own national currencies.”
Phiri emphasized that creating a common currency would be impractical due to the diverse markets and economic structures of BRICS nations, which include Brazil, Russia, India, China, and South Africa.
The South African rand experienced a 0.4% decline, trading at 18.1283 per U.S. dollar by 10:20 a.m. in Johannesburg, aligning with a broader trend among emerging-market currencies amid renewed dollar strength.
BRICS has advocated for reforms to the international financial system but has not agreed on adopting a new currency. The bloc’s New Development Bank continues to utilize the U.S. dollar for its investments, which have surpassed $30 billion across member states and other developing economies.
DIRCO stated: “South Africa supports the increased use of national currencies in international trade and financial transactions to mitigate the impact of foreign exchange fluctuations, rather than focusing on de-dollarisation.” The department also highlighted the importance of strengthening correspondent banking networks and developing infrastructure for settlements in national currencies to advance this goal.
Kremlin spokesperson Dmitry Peskov responded to Trump’s tariff threats by asserting that such measures would likely accelerate the shift towards using national currencies among BRICS countries. He noted a global trend of nations adopting national currencies for external trade, indicating a diminishing appeal of the U.S. dollar as a reserve currency.
Russian President Vladimir Putin has advocated for BRICS countries to utilize their national currencies for trade and investment but acknowledged that discussions about a single BRICS currency are premature.
India dismisses talk of a BRICS currency to challenge the dollar
India dismisses talk of a BRICS currency to challenge the dollar
India’s Reserve Bank has dismissed talk of a new BRICS currency being developed to challenge the US dollar.
This followed threats from US president-elect Donald Trump to retaliate against the bloc for considering the idea.
“BRICS currency was an idea raised by one of the members and was discussed but no decision has been taken,” Reserve Bank of India Governor Shaktikanta Das said on Friday.
“The geographical spread of the countries has also to be kept in mind, unlike the euro zone which has geographical contiguity.”
India has been attempting to encourage the use of the rupee in cross-border payments as it seeks to reduce reliance on the dollar.
Das said: “We want to derisk Indian trade as dependence on one currency can be problematic at times because of appreciation or depreciation.”
Ahead of the 2023 BRICS conference, Finance Minister Enoch Godongwana said no proposal to introduce a new BRICS currency had been put forward, not even informally, and none of the countries were ready to deal with the logistics and administration of such a currency.
In response to Trump’s threat this week, the government repeated that there are no plans to create a BRICS currency.
The bloc’s New Development Bank continues to rely on the dollar for its investments, which have exceeded $30 billion in member states and other developing economies, Dirco said.
“South Africa supports the increased use of national currencies in international trade and financial transactions to mitigate the impact of foreign exchange fluctuations, rather than focusing on de-dollarization,” it said.
BRICS Nations to Replace US Dollar Reserves with Bitcoin, Expert Predicts
BRICS Nations to Replace US Dollar Reserves with Bitcoin, Expert Predicts
The potential for Bitcoin to serve as an alternative to the US dollar is gaining traction, with economist Jeremy Siegel asserting that countries may ultimately abandon the US dollar for Bitcoin.
Trump’s mixed messages about his support for Bitcoin and simultaneous opposition to BRICS initiatives illustrate a complex landscape.
For over a decade now, the BRICS alliance (Brazil, Russia, India, China, and South Africa) has been advocating for “de-dollarization” to lessen reliance on the U.S. dollar in international trade and financial transactions. Despite facing hurdles along the way and failing to diminish the Western currency’s dominance, Jeremy Siegel, an economist at Wisdom Tree, a financial services company, supports the analogy that de-dollarization is inevitable.
As reported by Benzinga, Siegel’s stance underscores Bitcoin’s rising significance in the global financial system. Siegel commented on former President Donald Trump’s ongoing endorsement of Bitcoin (BTC), highlighting its potential to undermine the dominance of the US dollar more significantly than gold or currencies from BRICS nations.
Siegel’s observations extend beyond the immediate tensions among BRICS countries. Trump has publicly celebrated Bitcoin, raising eyebrows given his critical stance toward BRICS efforts to create a new reserve currency. “It’s curious that Trump threatens 100% tariffs on BRICS nations while simultaneously endorsing Bitcoin’s price rise,” Siegel remarked, reinforcing the idea that Bitcoin is perceived as a potential global currency akin to what BRICS is pursuing.
Furthermore, Siegel argues that Bitcoin poses a more substantial threat to the US dollar as a reserve currency than any initiatives stemming from emerging market economies. Trump’s positive outlook on cryptocurrency could propel its adoption on a wider scale, prompting additional countries to shift away from traditional dollar reserves.
Dollar’s surge sparks biggest fall in emerging market currencies in 2 years.
Dollar’s surge sparks biggest fall in emerging market currencies in 2 years.
A surging US dollar and a “confluence of bad news” have sparked the biggest sell-off in emerging market currencies since the early stages of the Federal Reserve’s aggressive rate-raising campaign two years ago. A JPMorgan index of EM currencies has fallen more than 5 per cent over the past two and a half months, putting it on course for its biggest quarterly decline since September 2022. The decline has been broad, with at least 23 currencies tracked by Bloomberg falling against the dollar this quarter. The greenback has been on a tear since late September as one of the most prominent “Trump trades”, fuelled by expectations that US president-elect Donald Trump will impose sweeping trade tariffs and loosen fiscal policy when he takes office next month. “The dollar is absolutely front and centre” as the driver of weakness in EM currencies, said Paul McNamara, lead manager on emerging market bond and currencies at fund firm GAM. Trump announced last month he would impose levies of 25 per cent on all imports from Mexico and developed market peer Canada, along with an additional 10 per cent on Chinese goods. The Mexican peso has fallen 2.1 per cent this quarter, while China’s offshore renminbi is down 3.7 per cent. More broadly, the South African rand — usually seen as a proxy for sentiment across EMs because it is easier to trade than other currencies — has fallen about 2.4 per cent since the end of September.
BRICS: US Could Toughen Sanctions on Russia’s Oil Exports
BRICS: US Could Toughen Sanctions on Russia’s Oil Exports
The US is considering toughening sanctions on Russia’s oil exports to weaken President Vladimir Putin and the country’s economy. The US could also impose sanctions on its tanker fleet that transports oil to other countries. The restrictive measures from the US could pose a challenge to Russia, which is keeping its economy afloat by selling oil at discounted prices.
The US is considering toughening sanctions on Russia’s oil exports to weaken President Vladimir Putin and the country’s economy. The US could also impose sanctions on its tanker fleet that transports oil to other countries. The restrictive measures from the US could pose a challenge to Russia, which is keeping its economy afloat by selling oil at discounted prices.
watcher.guru/news/brics-india-makes-huge-announcement-on-new-currency
Malaysia bandwagoning with BRICS
Malaysia bandwagoning with BRICS
Malaysia’s desire to join BRICS is not a recent development. BRICS — an intergovernmental economic organisation comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, the United Arab Emirates and Ethiopia — has as attempted to pose as a non-Western, Global South economic alternative to the Group of Seven. Malaysia is eager to join as it shifts its international economic approach from hedging to bandwagoning by aligning itself with the non-Western economic grouping.
Advocates of hedging have shown that Malaysia has historically employed this approach to navigate China–US rivalry and the uncertainties of international dynamics. But the rise of BRICS, coupled with the counterproductive effect of Western economic hegemony and the West’s one-sided stance in the Israel–Hamas conflict, an issue that deeply unsettled Malaysian Prime Minister Anwar Ibrahim, has prompted a significant shift in Malaysia’s perception of global dynamics.
Anwar has welcomed the end of the unipolar world order and described how the emergence of China, the leading force in BRICS, gave a ray of hope to Malaysia as a contending force to the Western-dominated world order. Minister of Economic Affairs Rafizi Ramli went further, saying that the Global South has been marginalised and under-represented under the current international economic order and ‘BRICS has become a critical counterbalance’.
Malaysia’s political elites believe that aligning with BRICS offers Malaysia substantial advantages, comparable to the influence of the creation of the Bretton Woods system. Malaysia missed the opportunity to shape the original Bretton Woods system, but is now intent on playing a leading role in shaping the future rules of regional economic governance.
This perspective is grounded in the belief that BRICS can provide public goods that align with Malaysia’s aspirations to enhance international economic cooperation and reform international financial institutions. Anwar’s attempts to revive the defunct Asian Monetary Fund during his diplomatic visits, including his trip to China in April 2023, were a clear signal of Malaysia’s intention to play a larger role on the regional economic stage.
BRICS Expansion: Implications for Africa and the Middle East.
BRICS Expansion: Implications for Africa and the Middle East.
The BRICS (Brazil, Russia, India, China and South Africa) bloc, originally formed in 2009, has long represented a coalition of emerging economies challenging the traditional dominance of the West in global political and economic affairs. The recent inclusion of Saudi Arabia and Egypt, alongside other countries like Iran, Argentina and the United Arab Emirates (UAE), signals a crucial shift in the balance of global power. This expansion raises fundamental questions about the future of global geopolitics, trade dynamics, and regional alliances. While the expansion of BRICS could benefit Africa and the Middle East in terms of enhanced trade, investment, and geopolitical influence, it also presents several challenges that could reshape long-standing relationships and power structures in both regions.
The BRICS Expansion
BRICS’ expansion represents the bloc’s desire to grow its influence and become a more inclusive representation of the global South. Saudi Arabia and Egypt, two of the Middle East’s largest and most influential nations, bring substantial economic weight and geopolitical significance to the group. Saudi Arabia, with its vast oil reserves and Egypt, with its strategic location in the Arab world, are both critical players in regional and global politics. Their inclusion marks a pivotal moment in the evolution of BRICS, extending the group’s reach into the Middle East and deepening its involvement in Africa.
The decision to bring Saudi Arabia and Egypt into the fold is emblematic of BRICS’ aim to counterbalance the influence of Western powers and institutions, like the United States and the European Union. Saudi Arabia, traditionally aligned with the West due to its oil wealth and security relationships, may now view BRICS as a platform to diversify its international partnerships. Egypt, similarly, has been building stronger ties with both Russia and China in recent years, and its BRICS membership further solidifies this alignment. These new members will likely work together with other BRICS countries to reshape global governance structures, advocate for multipolarity in international politics and reduce dependency on Western-dominated institutions.
Implications for Africa
Africa, a region historically underrepresented in global governance, stands to benefit significantly from the BRICS expansion. With the African Union (AU) aiming to strengthen the continent’s voice in global affairs, the inclusion of Egypt, a key African nation, into BRICS offers a potential avenue for Africa to wield greater political and economic influence. Moreover, Saudi Arabia’s economic power and investment capability could open new opportunities for African countries, particularly in trade, infrastructure development and energy resources.
One key area of potential growth is in trade relations. As BRICS countries push for reforms in global trade to move away from the dollar-dominated system, the inclusion of Saudi Arabia, a key player in the energy sector, could alter Africa’s trade dynamics. For instance, African nations that rely heavily on energy imports or exports could find new opportunities for cooperation within the BRICS framework, as Saudi Arabia could serve as a major energy partner for both African nations and other BRICS members. Egypt, with its strategic location and control over the Suez Canal, could also play a critical role in facilitating trade between Africa and the Middle East, while promoting regional economic integration.
However, the BRICS expansion also carries risks. While Africa could potentially benefit from enhanced investment and trade, it must be wary of becoming increasingly reliant on external powers. There is the danger that African countries could fall into a new form of dependence, this time on BRICS members, much as they have historically been dependent on Western powers. BRICS, despite its advocacy for multipolarity, may still be driven by the interests of its largest members, China, Russia and India, which could overshadow the needs of smaller African nations.
www.modernghana.com/news/1365723/brics-expansion-implications-for-africa-and-the.html
President-elect Trump Threatens 100 Percent Tariffs on BRICS Nations
President-elect Trump Threatens 100 Percent Tariffs on BRICS Nations
President-elect Donald Trump threatened to impose 100 percent tariffs on Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates, known as the BRICS group of nations. BRICS is an acronym for the founding member countries Brazil, Russia, India, China, and South Africa.
There have been discussions among BRICS to move away from using the U.S. dollar and developing a common currency. In response to this, President-elect Trump stated in late November on social media, “We require a commitment from these countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy.”
This approach is likely to impact the growth of BRICS' memberships, as the assumption is that countries that have been eager to join the group of nations might suspend their applications for the next four years. A majority of the member countries are strong trading partners of the U.S. and would rather not be hit with 100 percent tariffs. Saudi Arabia, for example, has been invited to join BRICS, but is yet to respond to this invitation and is likely not to do so anytime soon or might reject the offer following this announcement.
President-elect Donald Trump on Saturday threatened 100% tariffs against a bloc of nine nations if they act to undermine the U.S. dollar.
Not just waiting around for higher tariffs, China looks to BRICS
Not just waiting around for higher tariffs, China looks to BRICS
Donald Trump’s cabinet appointments and policy pronouncements have been dominating the headlines and many of these appointments and pronouncements have dire implications for China. The Chinese have noticed.
They’re signaling some of the ways they will react if Trump tries to shut China out of the US market. You might even say they’re reacting pre-emptively.
Trump has chosen China hawks for his secretary of state (Marco Rubio), national security advisor (Mike Walz) and ambassador to China (David Perdue). He has repeated his promises to impose 60% tariffs on Chinese products. The other day, he threatened the nine members of the BRICS bloc, which include China, with 100% tariffs if they attempt to replace the US dollar as the world’s reserve currency.
The BRICS countries aren’t seriously threatening to do that – any time soon, at least. For the Chinese yuan – the obvious candidate – to play the reserve-currency role, China would have to liberate its controls on flows of capital. It doesn’t want to do that.
But BRICS is an important part of China’s reaction to the risk of severe limitations on its access to the US market. The idea is diversification – relying more on other trading partners for both imports and exports. As US farmers can easily imagine, Brazil – the B in BRICS – is near the top of China’s dance card.
Own Actions Could Lead to U.S. Dollar Collapse
Own Actions Could Lead to U.S. Dollar Collapse
The U.S. dollar faces a major threat from de-dollarization. Due to America’s aggressive money policies, countries are moving away from using dollars. U.S. sanctions and using the dollar as a political tool have forced nations to look for other options. This global economic shift could lead to a U.S. dollar collapse. More countries are quickly switching away from the dollar in international trade.
The U.S. dollar faces a major threat from de-dollarization. Due to America’s aggressive money policies, countries are moving away from using dollars. U.S. sanctions and using the dollar as a political tool have forced nations to look for other options. This global economic shift could lead to a U.S. dollar collapse. More countries are quickly switching away from the dollar in international trade.
South Africa-US trade deal still on – for now
South Africa-US trade deal still on – for now
South Africa will retain its preferential access to the US markets for its goods in 2025 despite strained relations between the countries.
After undertaking an annual review of which nations are allowed to enjoy duty-free access to the world’s biggest economy under its African Growth and Opportunity Act, Washington left its list of eligible and ineligible nations unchanged for next year, the Office of the US Trade Representative said in a statement Sunday.
South Africa’s increasingly close ties with China, refusal to condemn Moscow’s invasion of Ukraine and its anti-Israel stance have raised concern in the US.
While President Joe Biden’s administration has sought to build ties with the country to counter Russia and China’s influence, US lawmakers have been highly critical of Pretoria after it took Israel to the International Court of Justice over accusations of genocide amid the war in Gaza.
As a result, the US House in June passed a key annual defence policy bill with an amendment calling for a review of South Africa’s national security risks to the US. The bill still needs approval from the Senate and the White House.
If passed, it could complicate the status of thousands of South African products. They enter the world’s biggest market duty free under AGOA, and the so-called Generalized System of Preferences.
BRICS expands with 9 new partner countries. Now it’s half of world population, 41% of global economy
BRICS expands with 9 new partner countries. Now it’s half of world population, 41% of global economy
BRICS keeps expanding, adding 9 partner countries in January 2025, after admitting 4 new members in 2024. It now makes up roughly half of the global population and more than 41% of world GDP (PPP). It’s an economic powerhouse, with top producers of key commodities like oil, gas, grains, meat, and minerals.
BRICS, the Global South-led forum for economic cooperation, continues to grow in influence, as its seeks to de-dollarize and transform the international monetary and financial system.
After admitting four new members in 2024, BRICS officially welcomes nine new nations as partner countries on January 1, 2025. They are:
Belarus
Bolivia
Cuba
Indonesia
Kazakhstan
Malaysia
Thailand
Uganda
Uzbekistan
With its nine members and nine partners, BRICS now makes up roughly half of the global population and more than 41% of world GDP (PPP).
At the BRICS summit in Kazan, Russia in October 2024, 13 countries were invited to become BRICS partners, meaning they are on the path to full membership in the near future.
Nine of these 13 nations accepted the invitation. The remaining four did not give a formal response as of the end of 2024. These were Algeria, Nigeria, Turkey/Türkiye, Vietnam.
The Russian government, which in December announced the admission of the nine new partners, emphasized that “we expect that in the near future responses will come from” the other four.
https://geopoliticaleconomy.com/2024/12/25/brics-expands-9-partner-countries-population-economy/
CHARTS: The coming critical minerals trade war is BRICS short of a load
CHARTS: The coming critical minerals trade war is BRICS short of a load
The incoming Trump administration’s threat of tariffs on friend and foe has muddied the already cloudy outlook for mining and metals in 2025.
Chinese retaliation has been swift, imposing stricter export controls on so-called dual-use materials and banning shipments of gallium, germanium, antimony and other ‘superhard’ materials.
While sourcing these substances quickly is difficult and certainly a headache for the US, and while prices of these low-volume materials have already rocketed, there are critical mineral projects and mines in the country and friendly nation-producers that can take up the slack.
Just last week Rio Tinto announced plans for gallium production at a Canadian facility and Trump’s promises of fast-tracking government approvals for extractive industries could see some critical mineral projects long in the works turn into producing assets (and when all else fails just buy Greenland).
Beijing’s tightening of export rules around graphite (similar to those applied to rare earths more than a year ago), which is used in virtually all electric vehicle and energy storage batteries, could have bigger impacts.
China’s total dominance of the production, and more so, processing of the anode material is today what it was on rare earth when the country’s export quotas saw it land up at the WTO tribunal in 2010.
While rare earth exploration and production outside China have boomed since then, the country’s grip on downstream permanent magnet and rare earth metal production will take many more years to fully prise.
Though there are no bans on graphite and rare earths exports, it’s a shot across the bow, and allows Beijing to keep its powder dry, for any future retaliation against US trade sanctions.
BMO Capital Markets in its 2025 mining outlook says further restrictions from China look probable, and this could result in “further amplified minor metals prices moves in 2025”.
www.mining.com/charts-the-coming-critical-minerals-trade-war-is-brics-short-of-a-load/
Russian companies increasingly using Bitcoin amid sanctions
Russian companies increasingly using Bitcoin amid sanctions
Russian companies are increasingly using Bitcoin and other digital currencies for international payments in response to Western sanctions, Reuters reported on Dec. 25.
Once key facilitators of Russia’s trade, Chinese banks have significantly curtailed transactions over fears of losing access to U.S. financial markets. By mid-2024, roughly 80% of Russian payments in Chinese yuan were reportedly rejected or returned.
The shift follows legislative changes in Russia allowing cryptocurrencies in foreign trade to counter the impact of sanctions. Moscow has embraced cryptocurrencies, including legalizing Bitcoin mining.
Russian Finance Minister Anton Siluanov confirmed during a Russia-24 interview that domestically mined Bitcoin is now being used in foreign trade under an experimental framework.
“Such transactions are already occurring,” Siluanov said, emphasizing that digital currencies could become a key tool in international payments.
Sanctions have heavily restricted Russia’s access to traditional financial markets. Both the U.S. and the EU banned the export of dollars and euros to Russia in March 2022, reducing their use in trade.
Chinese yuan initially filled the gap, becoming the most traded foreign currency in Russia. However, expanded U.S. sanctions targeting financial institutions doing business with Russia have further constrained payment options.
Russia and China have reportedly discussed barter-based trade as another mechanism to navigate sanctions-related payment challenges, Reuters reported earlier in August.
BRICS | BRICS Countries Now Use National Currencies for 65% of Mutual Trade Settlements in 2024, IMF Data Reveals
BRICS | BRICS Countries Now Use National Currencies for 65% of Mutual Trade Settlements in 2024, IMF Data Reveals
The US dollar’s dominance in global foreign exchange reserves is steadily waning, with the latest figures from the International Monetary Fund (IMF) showing a sharp decline to its lowest level in nearly 30 years.
According to the IMF’s most recent data, the greenback’s share of official global reserves fell by 0.85% between July and September 2024, dropping to 57.4%.
This marks the dollar’s lowest share since 1995. The IMF did not provide data for earlier periods, but the decline in the dollar’s dominance has been a consistent trend for several quarters.
In a blog post from June 2024, the IMF pointed to a growing trend of diversification as countries look to reduce their reliance on the U.S dollar. The decline of the greenback is being matched by an increase in the use of other currencies, with notable gains for the Euro and the Japanese Yen.
For example, in the third quarter of 2024,
the Euro’s share of global reserves rose to 20.02%, up from 19.75% in the previous quarter.
Meanwhile, the Japanese Yen has seen consistent growth in its share of global investments over the past six quarters, reaching 5.82% in Q3.
In addition to these shifts, the Chinese Yuan, which had seen a decline in its share of global reserves for nine consecutive quarters, rebounded in the third quarter of 2024, rising to 2.17%. While still a small fraction of the global reserve pool, this signals that the Yuan may be gaining traction among central banks looking to diversify their holdings.
Despite the ongoing shift, the U.S dollar remains the world’s pre-eminent reserve currency, accounting for over half of global forex reserves. The Euro remains the second most widely held currency.
BRICS Economies to Surpass Half of Global GDP, Challenging Western Dominance
BRICS Economies to Surpass Half of Global GDP, Challenging Western Dominance
Russia says BRICS nations will surpass half of global economic output in 10-15 years, signaling a shift in power that could challenge Western dominance.
The BRICS nations are rapidly emerging as dominant players in the global economy, with their collective GDP expected to surpass half of the world’s economic output within the next 10 to 15 years.
This projection was highlighted by Russian Deputy Prime Minister Alexander Novak, who, in an interview with Rossiya-24, underscored the growing influence of the BRICS bloc.
“BRICS is a potentially high volume of global GDP, about 35%, and it is getting bigger and bigger every year. The association includes large countries – Brazil, China,” Novak stated, adding:
“We expect that in the next 10-15 years the share of BRICS countries’ GDP will be more than half of the entire global economy.”
This optimistic outlook reflects the increasing economic weight of BRICS nations whose combined output al – ready exceeds that of the G7. BRICS, initially comprising Brazil, Russia, India, China, and South Africa, has expanded its membership significantly in 2024 to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE).
This enlargement reflects BRICS’ growing influence as a counterbalance to Western-dominated economic institutions. The expanded group enhances BRICS’ global energy influence, with Saudi Arabia and the UAE as key oil producers and strengthens its geopolitical presence by including countries from the Middle East and Africa.
The new members bring diverse economic strengths, with Iran adding strategic energy and trade links, while Egypt and Ethiopia bolster Africa’s representation.
newtelegraphng.com/brics-economies-to-surpass-half-of-global-gdp/
Uganda, 8 Other Countries Officially Join BRICS
Uganda, 8 Other Countries Officially Join BRICS
MOSCOW, Jan 2 (NNN-KBC) - Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Thailand, Uganda, and Uzbekistan have from Jan 1, 2025 officially become BRICS partner states.
With this expansion, BRICS and its partners will now represent 41 per cent of the global economy
In a press briefing, Russian presidential aide Yuri Ushakov said the countries have reiterated their willingness to receive such a status and that invitations to become partners have been sent to four other countries.
The invitation for partnership was extended during the October 2024 summit in Kazan, Russia.
Trump Vows Tariffs Will Pay Off US Debt, Warns BRICS Nations Over Dollar Replacement
Trump Vows Tariffs Will Pay Off US Debt, Warns BRICS Nations Over Dollar Replacement
Trump Advocates Tariffs to Pay Off US Debt, Warns BRICS Nations Against Replacing the Dollar.
Washington DC: US President-Elect Donald Trump on Friday said that tariffs alone can fix the US economy and help pay off their debt.
Trump said that tariffs generated wealth in the country and then they switched to income tax.
In a post on X, he said, "The Tariffs, and Tariffs alone, created this vast wealth for our Country. Then we switched over to Income Tax. We were never so wealthy as during this period. Tariffs will pay off our debt and, MAKE AMERICA WEALTHY AGAIN!"
Trump has threatened about tariffs several times before.
Trump on December 1 threatened the BRICS nations, including India, with 100 per cent tariffs and called for a clear commitment from these countries to refrain from creating a "new currency" or supporting any other currency to replace the US dollar.
Taking to the social media platform Truth Social, Trump stated that the idea of BRICS nations trying to move away from the dollar while the US stood by and watched was "over."
India Rejecting BRICS Currency, Aims to Promote US Dollar
India Rejecting BRICS Currency, Aims to Promote US Dollar
BRICS member India remains skeptical of a common BRICS currency citing risks of alienating global trade ties with the US. Leading import and export businesses in India and those stationed in the US want to keep the US dollar intact. Indian businesses are now cautious in embracing a common currency as it risks disrupting the normal flow of commerce.
Inflection: India's skepticism towards a common BRICS currency is indeed influenced by several factors, including its historical geopolitical stance. Here are a few key reasons:
Economic Stability: India's trade relations with the US are significant, and any disruption caused by a new currency could impact its economy. The US dollar is widely used in international trade, and a shift could introduce uncertainties and risks.
Geopolitical Strategy: Historically, India has maintained a policy of strategic autonomy, avoiding entanglement in major power conflicts. Adopting a BRICS currency could be seen as aligning too closely with other BRICS nations, potentially complicating its relationships with other global powers, including the US.
Trade Relations: India's trade with the US is substantial, and maintaining the status quo helps ensure smooth trade operations. A new currency could complicate transactions and affect the competitiveness of Indian businesses in the US market.
Historical Context: India's past experiences, such as its non-aligned stance during the Cold War, have shaped its cautious approach to international economic policies. This historical context influences its current decisions and strategies.
In essence, India's cautious stance on a common BRICS currency is a blend of economic pragmatism and historical geopolitical strategy. It aims to balance its global trade relationships while maintaining its strategic autonomy.
Powering BRICS digital future: How Rosatom SMRs could transform South Africa’s energy landscape
Powering BRICS digital future: How Rosatom SMRs could transform South Africa’s energy landscape
South Africa’s current energy crisis, characterized by rolling blackouts and a struggling power grid, underscores the need for reliable power sources to support such digital advancements.
As the South African Reserve Bank (SARB) advances its push toward a cashless society, the global digital currency revolution is gaining momentum.
Among the key players, the BRICS bloc has hinted at its own digital currency, called ‘BRICS Pay’. This cryptocurrency aims to facilitate trade among BRICS partners, with Yury Ushakov, a top Kremlin foreign policy aide, stating:
“We believe that creating an independent BRICS payment system is an important goal for the future, which would be based on state-of-the-art tools such as digital technologies and blockchain. The main thing is to make sure it is convenient for governments, common people, and businesses, as well as cost-effective and free of politics.”
BRICS Intensifies Alternative Payments—2025 Agenda Targets Dollar-Free Systems
BRICS Intensifies Alternative Payments—2025 Agenda Targets Dollar-Free Systems
In a bold move aimed at reshaping the global financial landscape, the BRICS nations—Brazil, Russia, India, China, and South Africa—are intensifying their efforts to create alternative payment systems that bypass the U.S. dollar. As global economic dynamics shift, the 2025 BRICS agenda is set to accelerate the development of dollar-free payment mechanisms designed to increase trade among member states while reducing reliance on the U.S. dollar for international transactions.
A New Era for Global Trade
A New Era for Global Trade
Historically, the U.S. dollar has dominated global trade, acting as the default currency for international transactions. However, as the global economic environment becomes more multipolar, the BRICS countries are looking to break free from this dollar-dominant system. The group has made significant strides toward developing independent financial infrastructures that allow for greater autonomy in trade and finance.
The BRICS payment system is part of a broader push by these nations to create more resilient financial networks. This move aims to reduce the vulnerability of member states to geopolitical tensions and U.S. sanctions, which have often been imposed on countries that defy American policy interests. By focusing on alternative payment systems, BRICS is positioning itself as a counterbalance to Western financial influence.
BRICS Alternative Payment Systems: The Push for Local Currencies
BRICS Alternative Payment Systems: The Push for Local Currencies
One of the central goals of BRICS’ alternative payment agenda is to promote the use of local currencies in cross-border trade. Currently, most trade among BRICS nations is settled in U.S. dollars, but under the new initiative, member states will encourage the use of their own currencies for transactions. This would reduce the friction caused by currency conversion and exchange rate fluctuations, making trade between these countries more efficient.
The implementation of local currency settlements could also foster stronger economic integration within the BRICS bloc. By using national currencies in trade, the countries aim to create a more cohesive economic alliance that is less dependent on the dollar.
China, with its renminbi (RMB), has been particularly vocal about this shift. China has already begun promoting the RMB in trade agreements and international markets, and this effort is expected to gain momentum in the coming years as the BRICS countries solidify their commitment to reducing dollar dependence.
A Move Toward Digital Currencies and Blockchain Technology
A Move Toward Digital Currencies and Blockchain Technology
In addition to local currencies, BRICS countries are also exploring the potential of central bank digital currencies (CBDCs) and blockchain technology to facilitate dollar-free transactions. Digital currencies issued by central banks could streamline cross-border payments and provide a more secure and efficient alternative to traditional financial systems.
Blockchain technology could play a critical role in ensuring the transparency, speed, and security of these alternative payment systems. By leveraging blockchain’s decentralized nature, BRICS nations can create an alternative financial network that operates independently of Western-controlled institutions like SWIFT and the IMF.
Challenges and Potential Roadblocks
Challenges and Potential Roadblocks
While the BRICS initiative is ambitious, it faces several challenges. The adoption of local currencies and digital payment systems would require substantial investment in new infrastructure, technological developments, and regulatory frameworks. Additionally, there are risks associated with the volatility of emerging market currencies, which could undermine the stability of alternative payment systems.
Moreover, resistance from the West—particularly from the U.S. and European countries—could slow down the implementation of these systems. As the U.S. dollar remains the primary global reserve currency, its central role in the international financial system cannot be easily replaced. However, the BRICS countries are determined to reduce this reliance over time.
Looking Toward 2025 and Beyond
Looking Toward 2025 and Beyond
As the BRICS nations move forward with their agenda, the year 2025 will likely be a critical turning point for the global financial system. The group is expected to unveil significant developments in its alternative payment systems, including the full implementation of new mechanisms for cross-border transactions. The push for dollar-free trade could have far-reaching implications for the future of global finance, as it challenges the dominance of the U.S. dollar and the Western-led financial infrastructure.
In the coming years, we may see other countries and regions following BRICS’ lead in exploring alternative payment systems, particularly as digital currencies and blockchain technology become more mainstream. If successful, this movement could mark the beginning of a more diversified and multipolar financial order, where the U.S. dollar no longer holds undisputed sway over global trade and investment.
Inflection: Challenges
Global Dominance of the US Dollar: The US dollar is deeply entrenched in the global economy, serving as the world's primary reserve currency. This dominance makes it difficult to shift away from the dollar without significant economic disruption.
Economic Stability: Transitioning to a new currency system could introduce uncertainties and risks, potentially affecting trade, investment, and financial markets.
Technological Infrastructure: Developing and implementing alternative payment systems, such as blockchain-based platforms, requires substantial technological infrastructure and expertise.
Political and Economic Alliances: The US dollar is widely used in international trade and financial transactions. Moving away from it could strain relationships with countries that rely on the dollar for their economic activities.
Regulatory and Legal Frameworks: Establishing new payment systems involves navigating complex regulatory and legal frameworks, which can vary significantly across countries.
Strategic Steps
Strategic Steps
Strengthening Regional Cooperation: BRICS countries are working to enhance economic cooperation and trade in local currencies. This includes developing financial mechanisms that bypass traditional Western-dominated systems.
Blockchain Technology: Utilizing blockchain technology to create secure and efficient payment systems that can facilitate transactions without relying on the US dollar.
Global South Engagement: Expanding partnerships with other countries in the Global South to build a broader support base for alternative payment systems.
Financial Reforms: Implementing financial reforms to promote economic independence and reduce reliance on Western-dominated monetary systems
While the journey towards a dollar-free system is challenging, BRICS countries are making strategic strides to level the playing fields and enhance their economic sovereignty. It's a long-term goal that requires careful planning, collaboration, and innovation.
Aspirations for global influence and economic dominance
Historical Ambitions
Historical Ambitions
Many BRICS countries have a rich history of power and influence. For instance:
China: Historically known for its vast empire and cultural influence, China has been assertively seeking to expand its global footprint through initiatives like the Belt and Road Initiative (BRI).
India: With its ancient civilization and historical trade routes, India also aims to bolster its global standing and economic power.
Strategic Alliances
Strategic Alliances
The BRICS nations may form strategic alliances within the group to bolster their influence:
China and Russia: Both countries have shown strong cooperation in various geopolitical arenas, which could further their collective goals within BRICS.
India and Brazil: These countries might align on various economic and trade interests to strengthen their positions.
Economic Competition
Economic Competition
While collaboration within BRICS is essential, there is also an underlying competition:
Market Access: Each country aims to secure better access to markets and resources, which can lead to competitive dynamics.
Technological Advancements: Investments in technology and innovation are key areas where BRICS countries compete to lead globally.
Geopolitical Maneuvering
Geopolitical Maneuvering
The desire to challenge Western dominance, particularly that of the USA, adds another layer of complexity:
Alternative Institutions: BRICS countries have established institutions like the New Development Bank (NDB) to provide alternatives to Western-dominated financial systems.
Diplomatic Initiatives: Efforts to engage other emerging economies and build coalitions further indicate the strategic maneuvering within BRICS.
In essence, the journey towards a unified economic strategy within BRICS is intricate, involving both collaboration and competition. Historical legacies, strategic alliances, and geopolitical ambitions all play a role in shaping the future of these economies.
www.hpbl.co.in/news/brics-intensifies-alternative-payments-2025-agenda-targets-dollar-free-systems/
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