Axel de Vernou Farrell Gregory
Last month’s BRICS summit saw representatives from thirty-six countries discuss the formation of a new world order without dollar dominance—and, by extension, one in which America and its allies no longer play a preeminent role. As BRICS member states alleviate bilateral tensions and Global South countries turn away from American aid, Washington urgently needs to adjust to today’s shifting geopolitical landscape.
The summit’s theme was unlocking the potential of countries that felt spurned by the West in the post-Cold War era. “We are not building up a bloc that will be targeted against somebody’s interests,” Putin said. He envisions BRICS as a safe haven for countries wronged by Washington’s punitive use of the dollar. However, Russia alone cannot create an alternative financial ecosystem. This is why outreach to the Global South is indispensable to its strategy.
In September, during the Russian Energy Week International Forum, Putin emphasized that BRICS countries will lead the world’s future economic growth and that Moscow will support their industries by exporting fuel and energy products. A few days before the summit, Putin noted that BRICS, thanks to its new members, has surpassed the G7’s contribution to global GDP. Xi Jinping closed the event by repeating that the rise of the Global South heralds a “great transformation across the world.”
If these countries, as Putin contends, are seeking refuge from a U.S.-led financial system, what is the best way to attract them into an alternative geopolitical sphere? Russia and China see the solution in cross-border payment systems that rely on local currencies. The BRICS Cross-Border Payments Initiative (BCBPI) will act as the vehicle that establishes these channels so that member countries can conduct exchanges while circumventing any American involvement.
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