Latest news with #anti-BRICS
The Star
5 days ago
- Business
- The Star
Does the BRICS currency threaten the dollar?
Some people may be wondering why the US President has been acting out in recent months, threatening to impose tariffs, at times in a seemingly excessive manner. Economists and political analysts suggest that one of the main reasons for Trump's economic rhetoric is the United States' concern that BRICS countries are initiating a strategic plan to undermine the dollar, a process some observers refer to as "de-dollarisation''. The BRICS grouping includes Brazil, Russia, India, China, and South Africa and a few other countries that joined in the past couple of years. It all started in Kazan, Russia, during the 16th BRICS summit last year when these countries unveiled a symbolic BRICS banknote, unleashing hot debate regarding the US dollar's dominance. At the time, Russian President Vladimir Putin emphasised that the dollar is being used as a ''weapon.'' A year before, meanwhile, Brazilian President Luiz Inácio Lula da Silva proposed creating a new, common currency in South America to reduce its reliance on the dollar in international trade. India has also been advocating for local currency settlements among BRICS nations. The unveiling of the BRICS currency bill, featuring the Taj Mahal, added controversy, as the bloc explores challenging the US dollar's global financial power. Despite research showing that the US dollar remains the primary reserve currency, Trump would take none of that as he continued his criticism of BRICS. "We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar or, they will face 100% Tariffs,'' he wrote in his Social Truth platform in January. The statement was similar to the one he posted last November. According to Bloomberg, Brazil and South Africa have criticised Trump separately for his anti-BRICS comments, while India has refrained from responding publicly, signalling that it is walking a fine line in maintaining its relationship with Washington. Would a BRICS currency threaten the dollar? Political analyst Anda Mbikwana offers his insights on the issue. 'The unveiling of a symbolic BRICS banknote at the St. Petersburg International Economic Forum represents far more than ceremonial posturing — it signals a deliberate escalation in the bloc's strategy to construct alternative financial architectures that could fundamentally reshape global monetary dynamics. ''While critics may dismiss this $200 denomination note as mere symbolism, the careful design choices reveal sophisticated strategic thinking. The front's display of founding member flags alongside the reverse featuring partner nations creates a visual narrative of expanding multipolarity that directly challenges the hierarchical nature of the dollar-dominated system. ''This imagery reinforces BRICS' positioning as what President Putin has characterised as 'non-western' rather than 'anti-western' — a crucial distinction that broadens its appeal across the Global South.'' The Technological Infrastructure Behind De-dollarisation ''The symbolic banknote masks more substantive developments in BRICS' financial infrastructure. Russia's emphasis on blockchain-based payment systems and central bank digital currencies represents a technologically sophisticated approach to circumventing traditional dollar-denominated channels. ''These systems offer practical alternatives to SWIFT and correspondent banking relationships that have become increasingly weaponised through sanctions regimes.'' And how does this directly affect South Africa, one might ask. Said Mbikwana: ''For South Africa, this development presents both opportunities and challenges. Greater financial integration within BRICS could reduce transaction costs and currency exposure risks in trade with major partners. ''However, it also requires careful navigation of relationships with Western economies that remain crucial for South African exports and investment. The Reserve Bank's approach to central bank digital currency development will become increasingly strategic as these alternative payment systems mature.'' According to Mbikwana, despite BRICS' banknote symbolic significance, fundamental economic realities limit BRICS' ability to quickly displace dollar dominance. ''The United States retains unparalleled capital market depth, institutional credibility, and network effects that have historically proven resilient to challengers. Moreover, internal coordination challenges within BRICS — particularly between China and India — limit the bloc's ability to present a unified monetary alternative.'' The BRICS symbolic banknote, added Mbikwana, should be understood not as an immediate threat to dollar hegemony, but as a manifestation of longer-term structural shifts in global economic governance. ''Its significance lies not in its current form, but in its representation of institutional momentum toward financial multipolarity. ''American opposition to these developments may paradoxically accelerate their adoption by reinforcing perceptions of dollar weaponisation among emerging economies. ''The ultimate question is not whether BRICS can immediately supplant the dollar, but whether it can create sufficient institutional alternatives to reduce the international community's dependence on dollar-denominated systems. In this context, symbolic gestures serve as important markers of political will and institutional capacity — prerequisites for any serious challenge to existing monetary hierarchies.'' The purpose of the banknote will serve as a payment system designed to facilitate transactions within the BRICS bloc using local currencies and potentially central bank digital currencies. While a BRICS currency could potentially challenge the US dollar's dominance, it's unlikely to replace it entirely soon . There is ongoing development and testing, with a pilot programme potentially appearing before the end of 2026. Some economists are criticising Trump for threatening the BRICS, according to a CBS News report, saying it makes the US look weak. "It isn't a good look, as it indirectly elevates the stature of a non-threat and suggests a lack of confidence in the dollar," Brad Setser, a senior fellow at the Council on Foreign Relations and former Treasury Department economist, wrote on X.
IOL News
6 days ago
- Business
- IOL News
Does the BRICS currency threaten the dollar?
According to economists and political analysts, one of the main reasons for Trump's economic rhetoric has to do with US fears that BRICS countries are embarking on a strategic plan to dethrone the dollar, or de-dollarise the world, as some observers put it. Some people may be wondering why the US President has been acting out in recent months, threatening to impose tariffs, at times in a seemingly excessive manner. Economists and political analysts suggest that one of the main reasons for Trump's economic rhetoric is the United States' concern that BRICS countries are initiating a strategic plan to undermine the dollar, a process some observers refer to as "de-dollarisation''. The BRICS grouping includes Brazil, Russia, India, China, and South Africa and a few other countries that joined in the past couple of years. It all started in Kazan, Russia, during the 16th BRICS summit last year when these countries unveiled a symbolic BRICS banknote, unleashing hot debate regarding the US dollar's dominance. At the time, Russian President Vladimir Putin emphasised that the dollar is being used as a ''weapon.'' A year before, meanwhile, Brazilian President Luiz Inácio Lula da Silva proposed creating a new, common currency in South America to reduce its reliance on the dollar in international trade. India has also been advocating for local currency settlements among BRICS nations. The unveiling of the BRICS currency bill, featuring the Taj Mahal, added controversy, as the bloc explores challenging the US dollar's global financial power. Despite research showing that the US dollar remains the primary reserve currency, Trump would take none of that as he continued his criticism of BRICS. "We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar or, they will face 100% Tariffs,'' he wrote in his Social Truth platform in January. The statement was similar to the one he posted last November. According to Bloomberg, Brazil and South Africa have criticised Trump separately for his anti-BRICS comments, while India has refrained from responding publicly, signalling that it is walking a fine line in maintaining its relationship with Washington. Would a BRICS currency threaten the dollar? Political analyst Anda Mbikwana offers his insights on the issue. 'The unveiling of a symbolic BRICS banknote at the St. Petersburg International Economic Forum represents far more than ceremonial posturing — it signals a deliberate escalation in the bloc's strategy to construct alternative financial architectures that could fundamentally reshape global monetary dynamics. ''While critics may dismiss this $200 denomination note as mere symbolism, the careful design choices reveal sophisticated strategic thinking. The front's display of founding member flags alongside the reverse featuring partner nations creates a visual narrative of expanding multipolarity that directly challenges the hierarchical nature of the dollar-dominated system. ''This imagery reinforces BRICS' positioning as what President Putin has characterised as 'non-western' rather than 'anti-western' — a crucial distinction that broadens its appeal across the Global South.'' The Technological Infrastructure Behind De-dollarisation ''The symbolic banknote masks more substantive developments in BRICS' financial infrastructure. Russia's emphasis on blockchain-based payment systems and central bank digital currencies represents a technologically sophisticated approach to circumventing traditional dollar-denominated channels. ''These systems offer practical alternatives to SWIFT and correspondent banking relationships that have become increasingly weaponised through sanctions regimes.'' And how does this directly affect South Africa, one might ask. Said Mbikwana: ''For South Africa, this development presents both opportunities and challenges. Greater financial integration within BRICS could reduce transaction costs and currency exposure risks in trade with major partners. ''However, it also requires careful navigation of relationships with Western economies that remain crucial for South African exports and investment. The Reserve Bank's approach to central bank digital currency development will become increasingly strategic as these alternative payment systems mature.'' According to Mbikwana, despite BRICS' banknote symbolic significance, fundamental economic realities limit BRICS' ability to quickly displace dollar dominance. ''The United States retains unparalleled capital market depth, institutional credibility, and network effects that have historically proven resilient to challengers. Moreover, internal coordination challenges within BRICS — particularly between China and India — limit the bloc's ability to present a unified monetary alternative.'' The BRICS symbolic banknote, added Mbikwana, should be understood not as an immediate threat to dollar hegemony, but as a manifestation of longer-term structural shifts in global economic governance. ''Its significance lies not in its current form, but in its representation of institutional momentum toward financial multipolarity. ''American opposition to these developments may paradoxically accelerate their adoption by reinforcing perceptions of dollar weaponisation among emerging economies. ''The ultimate question is not whether BRICS can immediately supplant the dollar, but whether it can create sufficient institutional alternatives to reduce the international community's dependence on dollar-denominated systems. In this context, symbolic gestures serve as important markers of political will and institutional capacity — prerequisites for any serious challenge to existing monetary hierarchies.'' The purpose of the banknote will serve as a payment system designed to facilitate transactions within the BRICS bloc using local currencies and potentially central bank digital currencies. While a BRICS currency could potentially challenge the US dollar's dominance, it's unlikely to replace it entirely soon. There is ongoing development and testing, with a pilot programme potentially appearing before the end of 2026. Some economists are criticising Trump for threatening the BRICS, according to a CBS News report, saying it makes the US look weak. "It isn't a good look, as it indirectly elevates the stature of a non-threat and suggests a lack of confidence in the dollar," Brad Setser, a senior fellow at the Council on Foreign Relations and former Treasury Department economist, wrote on X.
India Gazette
11-07-2025
- Politics
- India Gazette
Fyodor Lukyanov: BRICS is evolving into a post-Western world order
Rio showed that the bloc isnt in crisis its in transition The idea of a multipolar world has long been used in two distinct contexts. One is when global hegemony is solid and unchallenged, as it was for the decade and a half following the Cold War. In that case, 'multipolarity' serves as little more than a slogan - a symbolic protest against US dominance, with no practical strategy behind it. The other is when that hegemony has fully collapsed, and international relations revert to their historical norm: a fluid, unpredictable interplay of states with differing levels of power. Then, multipolarity becomes a fact, and actions are guided by immediate context. Today's world fits neither condition. The old unipolar order is fading, but its structures and reflexes remain. That is why the current moment is so peculiar - and why BRICS has become such an important indicator of the transition underway. This group of nations, for all its diversity and contradictions, reflects the emerging outlines of a world less shaped by Western control. The latest BRICS summit in Rio de Janeiro prompted disappointment in some quarters. Several key leaders were absent, and the headlines lacked drama. Compared to last year's bold meeting in Kazan, it seemed muted. But this calmer tone is not a setback - it reflects the changing environment BRICS now operates in. Three trends help explain the summit's tone. First, global tensions are rising. The recent clashes between India and Pakistan, and between Israel and Iran, directly involve BRICS members. While not full-blown conflicts within the group, they underscore a lack of unity. As BRICS expands, internal diversity increases, making it harder to maintain a single voice. The natural result is cautious language and vague formulations. That may frustrate observers, but it reflects realism. Second, the United States under Donald Trump has adopted a more explicitly anti-BRICS stance. Washington has issued direct threats and imposed new duties on countries perceived to be aligned with the bloc. These efforts have a clear goal: to deter deeper cooperation between BRICS members. So far, they have not provoked open defiance. Most BRICS countries remain wary of direct confrontation with the West. Yet US pressure is steadily fueling resentment, and a firmer response may come if that pressure intensifies. Third, the rotation of the BRICS presidency from Russia to Brazil altered the rhythm of the group's activities. For Russia, BRICS is both a practical tool for economic coordination and a political platform that bypasses Western gatekeeping. Moscow invests heavily in its BRICS role. Brazil's focus is different. Tied more closely to the West, it has other strategic priorities. That doesn't mean Brasilia is uninterested in BRICS - only that it doesn't treat it with the same urgency. Still, something important has happened. The 2023 and 2024 summits in South Africa and Russia changed BRICS. The group has matured, acquiring a new identity. That development will take time to digest. India's upcoming presidency may continue the current more restrained phase, but that should not be mistaken for stagnation. It is a necessary period of consolidation. This is why the Rio meeting should be seen as a success. The early phases of BRICS expansion, when the group was seen as vague and aspirational, were relatively easy. No one expected much. Now, the stakes are higher. America and its allies, once dismissive, are paying close attention. They are actively probing for weaknesses. This alone shows that BRICS is starting to matter. The group's appeal lies in its alignment with real global trends. Today's international environment demands flexibility, minimal obligations, and openness to difference. BRICS embodies these features. It avoids binding structures, embraces diversity, and operates on the basis of shared (though loosely defined) interests. We are living in a time of disorder. There is no clear international balance, and no blueprint for restoring one. This transitional era will last, perhaps for decades. In the meantime, the world will increasingly look for platforms that reflect the new reality. BRICS is one of them. The perception of the group is shifting. It is no longer treated as a rhetorical device or a curiosity. It is becoming part of the emerging architecture of a multipolar world. That evolution will be slow and uneven, but it is underway. Following the summits in Johannesburg, Kazan, and now Rio, BRICS has entered a new phase. The challenge now is to recognize that change - and to adapt to it. (
