The BRICS Summit in Kazan signals an ambitious move to challenge the dominance of the U.S. dollar.
At a Glance
- Russia hosts the BRICS Summit, focusing on reducing U.S. dollar reliance.
- BRICS represents over 45% of the world population and 35% of global GDP.
- Inclusion of UAE and Iran boosts BRICS’ control over global oil output.
- De-dollarization could impact U.S. financial markets and global power dynamics.
- Alternative payment systems are developing within BRICS.
Kazan Summit Targets Economic Independence
The BRICS Summit, held in Kazan, Russia, underscores a strategic initiative toward economic independence from the U.S. dollar. And it could spell the end of U.S. global dominance.
Representatives from Brazil, Russia, India, China, and South Africa aim to bolster the use of local currencies in mutual trade. This significant event—also involving Saudi Arabia, Iran, Ethiopia, the United Arab Emirates, and Egypt—captures over 45% of the world’s population and contributes 35% to global GDP.
China emerges as a dominant force within BRICS, significantly contributing to the bloc’s exports and GDP. The gathering aims to foster a strategic shift toward de-dollarization, representing an effort to establish a new world order and reduce dependence on the U.S. dollar. The alliance, including oil-rich nations like the UAE and Iran, garners control over nearly 30% of global oil output, underscoring its geopolitical and economic weight.
Threats to Dollar Dominance
This collective poses a considerable threat to the U.S. dollar’s global dominance. Their efforts to shift global power dynamics may have lasting impacts on U.S. financial markets. As Russia hosts the summit, concerns about a “progressive loss of the role of the dollar” are shared among financial analysts, signaling potential investor apprehension.
Geopolitical analyst Pepe Escobar highlighted that comprehensive de-dollarization efforts might take decades, although signs of progress exist. For example, an increasing number of BRICS countries engage in trade using their national currencies, pointing to a multilateral trade system within BRICS that can potentially expand to BRICS Plus. Meanwhile, some experts, like E.J. Antoni, criticize current U.S. policies, suggesting they undermine the dollar’s value and status.
The future of humanity will not be dominated by the US elections but by the outcomes of the BRICS Summit in Kazan.
BRICS will not only deal with its own institutional and organizational agenda, deepening institutional integration, deepening economic integration, creating an… pic.twitter.com/xK7PR1BG7e
— 🅰pocalypsis 🅰pocalypseos 🇷🇺 🇨🇳 🅉 (@apocalypseos) October 21, 2024
Vision for a New Financial Landscape
The shift away from U.S. dollar dependency aligns with a broader vision for a new financial landscape. As the growing trade between Russia and China bypassing the dollar exemplifies, the transition is gradual yet significant.
Former President Donald Trump voiced his concern over the declining global confidence in the dollar.
“We will keep the U.S. dollar as the world’s reserve currency, and it is currently under major siege, many countries are leaving the dollar. They’re not gonna leave the dollar with me. I’ll say, ‘You leave the dollar, you’re not doing business with the United States, because we’re gonna put 100% tariffs on your goods,’” Trump asserted.
The BRICS Summit in Kazan is a crucial gathering aiming to redefine economic landscapes and examining pathways that could reshape global trade and financial systems.
