Russian Deputy Foreign Minister Alexander Pankin has affirmed that the BRICS nations will persist in developing a new settlement system, despite U.S. President-elect Donald Trump’s recent threats to impose 100% tariffs on countries attempting to undermine the U.S. dollar.
Trump’s warning specifically targeted BRICS members—Brazil, Russia, India, China, and South Africa—demanding they refrain from creating or supporting any currency intended to replace the U.S. dollar. He cautioned that failure to comply would result in substantial tariffs on their exports to the United States.
In response, Pankin clarified that BRICS is focusing on establishing a settlement system rather than introducing a new international currency. He stated unequivocally that efforts to develop this system will proceed as planned, indicating that the group remains undeterred by external pressures.
The Kremlin also weighed in, with spokesperson Dmitry Peskov suggesting that any U.S. attempts to enforce dollar dominance through economic coercion could backfire. Peskov noted a growing trend among countries to utilize national currencies in international trade, diminishing the U.S. dollar’s appeal as a reserve currency.
This development comes amid ongoing discussions within BRICS to enhance financial cooperation and reduce reliance on Western-dominated financial systems. In October 2024, during a summit in Russia, BRICS leaders proposed initiatives such as a cross-border payments system and a grain exchange to facilitate trade and ensure food security among member nations.
Analysts observe that the determination of BRICS countries to pursue alternative financial mechanisms reflects a broader shift towards multipolarity in the global economic order. By developing their own settlement systems, these nations aim to safeguard their economic sovereignty and mitigate the impact of potential sanctions or trade restrictions imposed by Western powers.
As the geopolitical landscape evolves, the actions of BRICS in establishing independent financial infrastructures may influence other emerging economies to consider similar strategies, potentially reshaping international trade and finance dynamics in the years to come.
BRICS Nations Defy U.S. Pressure to Develop Independent Payment Systems