Over the weekend, global attention turned to Rio de Janeiro as the 17th BRICS Summit convened on July 6â7. Under the theme âStrengthening Global South Cooperation for More Inclusive and Sustainable Governanceâ, the summit brought together leaders and observers from emerging powers with one common aim: reshaping the global order.
From discussions on AI governance and climate change to bold moves in finance and de-dollarization, BRICS 2025 was more than just a diplomatic gatheringâit was a declaration of intent from the Global South.
Originally formed in 2009 as BRIC (Brazil, Russia, India, China), the bloc added South Africa in 2011 to become BRICS. Over the past few years, it has grown to include Egypt, Ethiopia, Iran, Saudi Arabia, the UAE, and Indonesia, with Mexico attending this yearâs summit as an observerâa strong indication of its pivot toward BRICS amidst growing friction with the U.S. trade agenda.
Although major figures like Xi Jinping and Vladimir Putin didnât attend in person, their governments made their positions known. Notably, Dmitry Medvedev, Russiaâs Deputy Chairman of the Security Council, saw the U.S. backlash as validation of BRICS‘ trajectory.
One of the most discussed (and controversial) topics at the summit was BRICSâ pursuit of financial sovereignty. The bloc is actively developing an interbank settlement platform, with a potential multi-currency ledger for trading in local currencies such as the yuan, ruble, rupee, real, and rand.
This initiative builds on more than a decade of groundwork:
While Russia is pushing for a joint BRICS currency (and even presented mock-ups at the June SPIEF forum), countries like India and Brazil have taken a more cautious approach, preferring national currencies and alternative systems instead.
President Lula da Silva, once an advocate of a unified BRICS currency, now emphasizes building an alternative to Bretton Woods institutions rather than issuing a single coin.
Predictably, BRICSâ monetary aspirations haven’t gone unnoticed. In response to what he called „Anti-American policies,“ former U.S. President Donald Trump announced a 10% tariff on BRICS countries exploring de-dollarization strategiesâbacking off from previous threats of a 100% rate.
The reaction from BRICS leaders was swift. Lula da Silva reaffirmed Brazilâs right to explore new partnerships. Meanwhile, Medvedevâs response was almost celebratory, suggesting the U.S. reaction confirmed BRICS was on the right path.
Though BRICS is positioning itself as a counterweight to Western-led institutions like the IMF, World Bank, and SWIFT, some critics argue its agenda isnât radically different. The bloc still aligns with UN goals such as Agenda 2030 and the Sustainable Development Goals (SDGs).
This raises a pertinent question: is BRICS creating a true alternative to the current global systemâor simply a mirror image with a different flag?
Beyond the headlines on de-dollarization, the Rio summit also tackled high-impact topics such as:
By including these issues, BRICS is signaling a broader governance agenda, not just financial independence.
Despite a mix of ambitions and internal contradictions, BRICS is steadily shaping a new geopolitical and financial reality. Whether through trade, tech, or monetary systems, the bloc is asserting that the Global South deserves a seat at the tableâor maybe even a table of its own.
Yet, challenges remain. The U.S. dollar is still dominant, and many investors still flock to its „safe haven“ status. Even as gold gains popularity among central banks, the path to dethroning the dollar will be long and complex.
BRICS 2025 showcased a world in fluxâwhere power is decentralizing, alliances are shifting, and new ideas are challenging decades-old norms.
Is this the birth of a truly multipolar world? Or just another geopolitical pivot in disguise?
đ Time will tell. But one thing is certain: BRICS is no longer just a talking shop. Itâs a movement.
đą What do you think? Can BRICS redefine global finance? Will their settlement platform rival SWIFT? Letâs discuss in the comments đ
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