This week, Russian President Vladimir Putin gathered over two dozen countries at the BRICS Summit to discuss creating a “new world order” that is not dominated by the West and the U.S. dollar. The summit took place in Kazan, Russia, and aimed to reduce dependence on the dollar to avoid sanctions imposed by the U.S. and Western countries. Putin expressed his belief that using the dollar as a weapon was a mistake.
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi used the summit as an opportunity to showcase a more harmonious relationship between their countries after years of conflict. This came shortly after China and India resolved a military standoff over a disputed region.
The BRICS group, which includes Brazil, Russia, India, China, and South Africa, has been expanding to include more countries like Iran, Egypt, Ethiopia, the United Arab Emirates, and Saudi Arabia. Turkey, Azerbaijan, and Malaysia have also shown interest in joining. The alliance now represents half of the world’s population and 35% of global output.
At the summit, Russia sought to bring more countries into an alternative payment system to SWIFT, which has been used to impose sanctions. While Russia pushed for an anti-Western agenda, other members like Brazil, India, and South Africa advocated for a more cooperative approach to tailor international institutions to meet the needs of developing nations.
Iranian President Masoud Pezeshkian emphasized the importance of BRICS going beyond being a “dialogue club” and criticized the West’s frequent use of sanctions. He highlighted the negative impact of Western powers’ monopolistic outlook on peace, democracy, and development.
Currently, around 59% of global foreign currency reserves are held in dollar assets, down from 70% in 1999. Former President Donald Trump expressed concerns about losing the dollar as the world currency, warning that it would be detrimental to the U.S. economy. He emphasized the importance of maintaining the dollar’s status to avoid becoming a “Third World country.”
The BRICS Summit provided a platform for discussions on reshaping the global financial system and reducing reliance on the U.S. dollar. The alliance’s efforts to create alternatives to SWIFT and reform international institutions demonstrate a shift towards a more multipolar world order. As countries continue to navigate geopolitical tensions and economic challenges, forums like the BRICS Summit offer opportunities for dialogue and cooperation on the global stage.