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US President Donald Trump’s threat of punitive tariffs against members of the BRICS grouping for their alleged moves against the US dollar (de-dollarization) overlooks the fact that while no formal mechanism has been launched to create a rival currency, the group is increasingly trading in national currencies. Russian deputy foreign minister, Sergei Ryabkov, clarified that there are no moves to replace the dollar, and “anyone who says so only wants to ‘exert political and psychological pressure on BRICS members’”. (July 19, 2025) However, he pointed out that Moscow makes over 90% of all payments with BRICS partners in national currencies.
In fairness, it may be pointed out that the Brazilian President, Luiz Inácio Lula da Silva, had mooted a separate BRICS currency in 2023, but the idea never took off. However, as BRICS officially surpasses the G-7 in the size of its economy, the use of national currencies, ignoring the dollar, is unlikely to be reversed.
The US, however, irked at the rise of BRICS, announced several deterrent and protectionist measures including strict tariffs on the member countries. All the member states denounced “the rise of unjustified unilateral protectionist measures” and Washington’s raising of “indiscriminate” tariffs.
The 17th BRICS summit at Rio de Janeiro, Brazil (July 06-07, 2025) aimed at enhancing the autonomy of the Global South – “Strengthening cooperation among the countries of the South for more inclusive and sustainable governance” – amidst growing rivalry between the United States and China. As a multipolar world replaces Washington’s brief unipolar moment, the once formidable NATO is losing steam as the Western economies struggle to meet Ukraine’s demands for weaponry in its war with Russia.
At Rio, the BRICS expanded to eleven nations and nine partners, who together represent nearly half of the world’s population, contribute approximately 40% of global GDP (G7 less than 29%) and more than 50% of global economic growth, surpassing the G7 in purchasing power parity. It seeks to reform global governance and supports economic integration through the New Development Bank and the cross-border payment system dominated by the West.
Russian President Vladimir Putin, who addressed the summit via videoconference, observed that the “unipolar system of international relations… is being replaced by a more just, multipolar world,” and added that the global economic order was also being transformed. Putin said the liberal globalization model is losing its heft and the epicentre of economic activity is shifting to emerging markets.
Brazil President Lula pointed out the groups economic heft, stating that BRICS countries hold 84% of the world’s rare earths, 65% of manganese, and 63% of graphite”. It is pertinent that around the time of the summit, the St. Petersburg International Economic Forum eclipsed the G7, thus pushing the geopolitical centre of gravity to the Global South.
At Rio, Indian Prime Minister Narendra Modi focused on politics and security, economics and finance, cultural and humanitarian affairs, and elaborated New Delhi’s position on global and regional issues with emphasis on the fight against international terrorism. He drew attention to the recent terrorist attack in the Indian state of Jammu and Kashmir. This condemnation was included in the summit’s final declaration.
Emphasising commitment to the multipolar world order, Modi assumed the presidency for the BRICS 2026 summit and proposed cooperation and collaboration in critical sectors, including digital education access and agriculture, through the establishment of the BRICS Science and Research Repository. The group was urged to embrace a demand-driven policy to guarantee the long-term financial sustainability of the BRICS projects.
Russia proposed the creation of a new BRICS investment platform to give the member states an opportunity for mutual development. This laid the foundation for a potential Global South and Global East cooperation and coordination. Russia is set to host Intervision, a famous international television singing contest that BRICS member and partner states are keen to participate, to promote their shared cultural, spiritual, and family values.
Chinese Prime Minister Li Qiang mooted greater cooperation in sectors such as green economy, digital economy, aerospace, and sci-tech innovation. He emphasized BRICS cooperation on other multilateral forums like the G20, the Eurasian Economic Union, the United Nations, the Community of Latin American and Caribbean States, and the African Union.
Political analyst Abbas Hashemite noted that the inclusion of Indonesia as the new member state and Bolivia, Belarus, Cuba, Kazakhstan, Nigeria, Malaysia, Thailand, Uganda, Vietnam, and Uzbekistan as partner states is evidence of the increasing popularity of the BRICS. It suggests that the Global South is ready to break the shackles of Western hegemony.
References:
- The BRICS summit in Rio de Janeiro symbolizes a geopolitical shift away from the West, Mohamed Lamine KABA, July 07, 2025.
- Rio de Janeiro Summit: Strengthening Multilateralism in the Face of U.S. Pressure, Abbas Hashemite, July 11, 2025.
- On Indian Prime Minister Narendra Modi’s recent visit to five African and South American countries. Part 1, Anvar Azimov, July 10, 2025.
- On the new foreign tour of the Prime Minister of India Narendra Modi: Brazil and Namibia. Part 2, Anvar Azimov, July 11, 2025.
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