BRICS vs. the Dollar, Clarifications, Threats, and Global Economic Dynamics
BRICS vs. the Dollar, Clarifications, Threats, and Global Economic Dynamics
Geopolitical Analyst: 1-14-2025
As the global landscape shifts, the BRICS nations are making it clear: their move towards de-dollarization isn’t a hostile act against the US, but a pragmatic response to what they perceive as Washington’s flawed monetary policies.
Russian Deputy Foreign Minister Sergey Ryabkov, acting as Russia’s sherpa in BRICS, stated in a recent interview with TASS that they are prepared to explain this stance to US President-elect Donald Trump.
Ryabkov emphasized that BRICS is not seeking to dethrone the dollar as the world’s reserve currency. Instead, their actions are a direct consequence of what they consider “irresponsible and fundamentally flawed policy” emanating from Washington.
He went on to highlight that these policies have persisted across multiple administrations, including Trump’s first term, suggesting a systemic issue rather than a personal attack on any particular leader.
This pointed critique comes amidst discussions about BRICS’ increasing efforts in local currency trade and their exploration of alternative financial mechanisms. While these moves are often interpreted in the US as a direct challenge to the dollar’s dominance, Ryabkov frames it as a necessary step taken to mitigate the risks associated with the perceived volatility and unpredictability of US monetary policy.
The message is clear: BRICS nations feel they are being forced to seek alternatives to protect their economies. They are not proactively attacking the dollar; they are reacting to circumstances they feel are largely dictated by Washington’s actions.
This echoes the sentiment expressed by Russian President Vladamir Putin, which Ryabkov summarized as, “They are biting the hand that feeds them.” This quote suggests a frustration within BRICS that the very policies the US pursues are ironically pushing other nations away from the dollar, and ultimately, potentially destabilizing the US’s own influence.
The willingness of BRICS to engage in dialogue with Trump is significant. It suggests a desire to clarify their position, avoid misinterpretations, and potentially find a path towards a more stable and predictable global financial system. It also indicates that they see an opportunity in a new Trump presidency to renegotiate, if not their financial independence, then at least a re-evaluation of US monetary policy.
The conversation is likely to be complex, requiring a frank and honest assessment of global financial realities. For the US, this means acknowledging that its policies have consequences beyond its own borders. For BRICS, it requires a clear and consistent message that outlines their intentions and avoids being portrayed as aggressively anti-dollar.
Ultimately, this situation presents an opportunity for both sides to reassess their approach and work towards a system that benefits all. The alternative is an increasingly fragmented global financial landscape, where the dollar’s long-standing dominance may be slowly eroded not by direct confrontation, but by a quiet retreat to safer, more predictable alternatives.
The message from BRICS is clear: they are not looking to undermine the dollar, but they are certainly looking for alternatives to the policies that they feel are pushing them away. The question remains, will the US listen?