THE SUM OF BRICS - From Mumbai, Jakarta and London
New Delhi emphasised that members of the bloc are not conspiring to dethrone the dollar; Jakarta predicts the end of western domination; and, London sees the grouping as heading into irrelevance.
From BRICS Currency to BRICS Pay
Point Blank
By Lokeshwarri SK (Business Line Mumbai)
The BRICS summit 2025 has drawn to a close with the usual commitment to forge cooperation in the Global South and the expected tirade from Donald Trump. But there was plenty of drama ahead of the summit, with the Indian government going to great lengths to clarify that members of the bloc are not conspiring to dethrone the dollar.
The Indian Ministry of Foreign Affairs (MEA) Secretary had clarified that the members are only evaluating alternative channels to trade in national currencies to protect vulnerabilities and that it should not be construed as a move towards 'de-dollarisation'.
This is a classic case of the lady protesting too much. With the trade negotiations with Trump administration nearing the final stage, the Indian government does not want to be seen to be working closely with China and Russia to find an alternative to the dollar.
Especially when the US President had held out a stern warning in January, saying, "We are going to require a commitment from these seemingly hostile countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar or, they will face 100 per cent tariffs."
But despite these threats, the BRICS is certainly trying to create a viable alternative to reduce the dependence on the dollar and the US backed multilateral institutions.
Creation of a BRICS currency may not be a reality anytime soon, but BRICS PAY, an alternative to SWIPT, is already operational with Russia and China as the main users. Many of the members are also settling trade with each other in local currencies.
The strategy being adopted by the BRICS appears a smart one. They are not challenging the dominance of the dollar explicitly; but are slowly working on reducing the dependence on the 'mighty dollar. The results of this transition will be evident ten years later.
GROWING CLOUT OF BRICS
The US and its President have a reason to fear the growing clout of the BRICS bloc. While it was quite toothless in its initial years, with the only binding factor being the Goldman Sachs report in 2001 pointing towards Brazil, Russia, India.
The US and its President have a reason to fear the growing clout of the BRICS bloc. While it was quite toothless in its initial years, it is now turning into a mighty force.
From BRICS currency to BRICS Pay
The BRICS members are quietly working on an alternative payment channel which will co-exist with the dollar and China as the growth drivers in the next few decades. But the group is now turning into a mighty force comprising all the important countries in the Global South. While the inclusion of South Africa in 2011 expanded the bloc slightly, the Russia Ukraine war in 2022 turned out to be the game-changer for this bloc. The addition of six new members in 2024-25 — Egypt, Ethiopia, Indonesia, and Iran, Saudi Arabia, and the United Arab Emirates — has now made the bloc a force to reckon with.
The BRICS members may be developing countries, but together, they account for 29 per cent of global GDP on purchasing parity basis. They account for 48.5 per cent of the global population, which provides them a large market for their produce.
The vast land masses of Russia and China imply that 36 per cent of earth's territory is with BRICS. More important, the rare earth minerals which are needed to drive the emerging technologies are concentrated here; 72 per cent of these reserves are owned by BRICS members.
With UAE, Iran and Saudi Arabia joining the bloc, 43.6 per cent of the global oil production and 36 per cent of natural gas production is from BRICS members.
The BRICS mandate of increasing the influence of Global South countries in international governance and improving the legitimacy, equity in participation, and efficiency of global institutions such as the UN, IMF, World Bank, and WTO' appears to be resonating with many
It's therefore not surprising that more countries are now wanting to join the BRICS. A new category of BRICS partner countries was formed through the Johannesburg Declaration in 2024. The BRICS partner countries are Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Vietnam, Uganda, and The BRICS is still in its formative stage, evaluating areas where it can be effective. But its ability to come with an alternative to the dollar and West-controlled trade settlement systems is undisputed.
Though creation of a BRICS currency was on the table at one point, and the New Development Bank which can facilitate this is also in place, launchinga common currency appears next to impossible at this juncture. Brazil and Russia are willing to work towards it, but
India, China and South Africa seem quite reluctant. China's inevitable dominance in the currency bloc will not be acceptable to others including India.
Also, the belligerent statements being issued by the POTUS against the launch of a common currency is making the bloe tread cautiously in this regard.
But they are certainly moving ahead in reducing the dollar's dominance. The first step has been an increase in bi-lateral trade settlement in local currencies. India too has been settling its trade with Russia, the UAE, Sri Lanka, Nepal, Bhutan and Iran in local currencies in the last couple of years.
China is already settling almost 30 per cent of its trade in yuan.
Russia and China have spearheaded the creation of an alternative platform for cross-border trade settlement —
BRICS Pay. This payment system is already linked to 75 countries and is evolving as a strong contender to SWIFT. BRICS Pay enables settlement in 23 currencies including the dollar, yuan, rupee and the currencies of all other BRICS countries.
BRICS Pay is designed in such a way that it uses the banking infrastructure of the BRICS countries, so the payment is made in the internal payment system of the participating countries, due to which the funds move fast.
In the declarations after the BRICS summit 2025, it was said, "We task our ministers of finance and central bank governors, as appropriate, to continue
Cross-Border Payments Initiative, and acknowledge the progress made by the BRICS Payment Task Force (BPTF) in identifying possible pathways to support the continuation of discussions on the potential for greater interoperability of BRICS payment systems."
The bloc is, therefore, in the process of putting together an alternative channel, brick by brick. How many of the members adopt it and whether it can challenge the West-led institutions, only time will tell.
BRICS in Brasil - Global South Rises
Featured contributor Prof Josef Mahoney joined CGTN to give a wrap-up of the #brics meeting in Rio.
Southeast Asia and the BRICS expansion
The latest BRICS summit embodied the ongoing shift in the world order from one of Western domination in rules and narratives to one counterweighted by Global South nations wielding agency.
By M.A. Hossain (The Jakarta Post)
In geopolitics, symbolism and substance often march hand in hand. The recent BRICS summit in Brazil is a case in point. While Western media largely reduced the event to a footnote, dismissing it as just another gathering of emerging economies, the joint declaration issued by the bloc signals something far more profound: the slow but undeniable erosion of Western hegemony and the ascent of a multipolar world order.
The BRICS declaration underscores what is increasingly self-evident: Multipolarity is no longer an aspiration; it is a geopolitical fact.
For decades, the world has operated under a system shaped by the neoliberal values of the so-called Washington Consensus, a system that has too often served as a thin veil for neocolonial exploitation. That consensus is fracturing today, and BRICS (Brazil, Russia, India, China, South Africa), which is now expanding to include new members like Indonesia, is emerging as one of the architects of this change.
One of the most striking features of the BRICS declaration is its unequivocal support for Palestinian statehood based on the 1967 borders, with East Jerusalem as the capital. The bloc has called for an immediate and unconditional ceasefire in Gaza, the withdrawal of Israeli forces, the release of hostages and the unhindered delivery of humanitarian aid. It is a position that flies in the face of Western double standards.
The contrast is instructive. When Russia invaded Ukraine, the West was quick to mobilize outrage, sanctions and military aid, yet when Israel's bombardment of Gaza results in mass civilian casualties, the Western response is often muted, mealy-mouthed or altogether absent.
BRICS has rightly pointed out this hypocrisy, calling for adherence to international law and the dignity of all people, regardless of political alliances.
This is not mere rhetoric. The call for Palestinian self-determination harks back to the spirit of the Bandung Conference in 1955, where postcolonial nations gathered to assert their right to chart their own course, free from imperial domination. In this regard, BRICS is not creating a new path but reviving an old one; one the world sorely needs to revisit.
Equally significant was the bloc’s condemnation of United States protectionism and unilateral economic measures that bypass the United Nations and undermine global stability. By denouncing tariffs, nontariff barriers and so-called green protectionism, the BRICS has shined a spotlight on the selective application of rules that have long skewed global trade in favor of advanced economies.
Historically, the West has preached free trade while practicing protectionism when convenient. The US, once the greatest advocate of open markets, has in recent years weaponized tariffs as part of its broader geopolitical strategy, from the Trump administration’s trade war with China to the Biden administration’s continuation of restrictive policies under the guise of national security and environmental protection.
BRICS’s call for reforming the World Trade Organization, including restoring its dispute settlement mechanism, underscores a collective frustration among developing nations that the current system serves the powerful at the expense of the vulnerable. This is not mere economic discontent; it is a clarion call for fairness.
The bloc’s demand for Israel to withdraw from occupied Syrian territory and its condemnation of terrorist activities in the region highlights another crucial theme: the defense of state sovereignty. Western interventions in countries from Iraq to Libya have left behind a trail of shattered states and human misery, often under the pretense of democratization or humanitarian intervention. BRICS is positioning itself as an alternative voice: one that prioritizes sovereignty, nonintervention and dialogue over military adventurism.
The recent lifting of unilateral sanctions on Syria, which BRICS welcomed, points to a recognition that punitive measures often do more harm to civilian populations than to the regimes they target. It is a nuanced position that echoes the failures of past Western interventions and the urgent need for more balanced approaches.
BRICS’s condemnation of Ukraine’s attacks on Russian civilian infrastructure, though controversial in Western eyes, reflects its commitment to opposing violence against noncombatants, irrespective of the actors involved. While the West’s singular focus remains on Russian aggression, BRICS seeks a more comprehensive view: one that condemns all attacks on civilians, including those committed by Ukraine.
This balanced approach may not align with Western narratives, but it reflects the bloc's insistence on consistency in international law, a principle too often sacrificed on the altar of geopolitical expediency.
Perhaps the most geopolitically significant development is the expansion of BRICS. The formal inclusion of Indonesia, along with the recognition of new partner countries such as Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan and Vietnam, signals a decisive shift in the global balance.
This is not an anti-Western coalition. Rather, it is a grouping of countries seeking to expand their strategic options in an increasingly polarized world. Southeast Asian nations, for example, are turning to BRICS not to reject Western ties but to diversify their economic and diplomatic engagements. This is what a world where smaller powers refuse to be mere pawns in great power rivalry looks like.
The New Development Bank and the Contingent Reserve Arrangement offer viable alternatives to the International Monetary Fund and the World Bank: institutions that, while ostensibly neutral, have historically served Western geopolitical interests. By offering financial and infrastructural support without the usual political strings attached, BRICS is helping Global South nations regain a measure of sovereignty over their development trajectories.
None of this is to suggest that BRICS is without its internal contradictions. The South China Sea disputes, lingering mistrust between India and China as well as the varying political systems of member states all pose challenges to unity. Yet the bloc’s ability to set aside differences in pursuit of common goals should not be underestimated.
The next summit in India in 2026 will be a litmus test. As Southeast Asian countries deepen their engagement, the choices they make will help determine whether BRICS can evolve into a credible counterweight to Western dominance or whether it will falter under the weight of its own diversity.
In the end, BRICS represents more than just an economic grouping; it symbolizes the emergence of agency in the Global South. For too long, the contours of the world order were drawn in the boardrooms of Washington, London and Brussels. That era is drawing to a close.
The BRICS declaration – on Palestine, on global trade, on sovereignty – is a statement of intent: The age of choices is here. And in a world where choices abound, power is no longer the exclusive preserve of the few.
Brics is sliding towards irrelevance – the Rio summit made that clear
By Amalendu Misra (The conversation UK)
The Brics group of nations has just concluded its 17th annual summit in the Brazilian city of Rio de Janeiro. But, despite member states adopting a long list of commitments covering global governance, finance, health, AI and climate change, the summit was a lacklustre affair.
The two most prominent leaders from the group’s founding members – Brazil, Russia, India, China and South Africa – were conspicuously absent. Russia’s president, Vladimir Putin, only attended virtually due to an outstanding arrest warrant issued by the International Criminal Court over his role in the war in Ukraine.
China’s Xi Jinping avoided the summit altogether for unknown reasons, sending his prime minister, Li Qiang, instead. This was Xi’s first no-show at a Brics summit, with the snub prompting suggestions that Beijing’s enthusiasm for the group as part of an emerging new world order is in decline.
Perhaps the most notable takeaway from the summit was a statement that came not from the Brics nations but the US. As Brics leaders gathered in Rio, the US president, Donald Trump, warned on social media: “Any Country aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.”
Trump has long been critical of Brics. This is largely because the group has consistently floated the idea of adopting a common currency to challenge the dominance of the US dollar in international trade.
Such a move makes sense if we focus on trade figures. In 2024, the value of trade among the Brics nations was around US$5 trillion, accounting for approximately 22% of global exports. Member nations have always felt their economic potential could be fully realised if they were not reliant upon the US dollar as their common currency of trade.
During their 2024 summit, which was held in the Russian city of Kazan, the Brics nations entered into serious discussions around creating a gold-backed currency. At a time when the Trump administration is waging a global trade war, the emergence of an alternative to the US dollar would be a very serious pushback against US economic hegemony.
But the freshly concluded Brics summit did not present any concrete move towards achieving that objective. In fact, the 31-page Rio de Janeiro joint declaration even contained some reassurances about the global importance of the US dollar.
There are two key obstacles hindering Brics from translating its vision of a common currency into reality. First is that some founding member nations are uncomfortable with adopting such an economic model, in large part due to internal rivalries within Brics itself.
India, currently the fourth-largest economy in the world, has a history of periodic confrontation and strategic competition with China. It is reticent about adopting an alternative to the US dollar, concerned that this could make China more powerful and undercut India’s long-term interests.
Second is that the Brics member nations are dependent on their bilateral trade with the US. Simply put, embracing an alternative currency is counterproductive when it comes to the current economic interests of individual countries. Brazil, China and India, for example, all export more to the US than they import from it.
In December 2024, following his election as US president, Trump said: “We require a commitment from these countries that they will neither create a new Brics currency nor back any other currency to replace the mighty US dollar or they will face 100% tariffs and should expect to say goodbye to selling into the wonderful US economy”. This blunt message all but killed any enthusiasm that was there for this grand economic model.
Caught in contradiction
The Brics group is a behemoth. Its full 11 members account for 40% of the world’s population and economy. But the bloc is desperately short of providing any cohesive alternative global leadership.
While Brazil used its position as host to highlight Brics as a truly multilateral forum capable of providing leadership in a new world order, such ambitions are thwarted by the many contradictions plaguing this bloc.
Among these are tensions between founding members China and India, which have been running high for decades.
There are other contradictions, too. In their joint Rio declaration, the group’s members decried the recent Israeli and US attacks on Iran. Brazil’s president, Luiz Inácio “Lula” da Silva, also used his position as summit host to criticise the Israeli offensive in Gaza.
But this moral high ground appears hollow when you consider that the Russian Federation, a key member of Brics, is on a mission to destroy Ukraine. And rather than condemning Russia, Brics leaders used the Rio summit to criticise recent Ukrainian attacks on Russia’s railway infrastructure.
Brics declared intention to address the issue of climate change is also problematic. The Rio declaration conveyed the group’s support for multilateralism and unity to achieve the goals of the Paris agreement. But, despite China making significant advances in its green energy sector, Brics contains some of the world’s biggest emitters of greenhouse gases as well as several of the largest oil and gas producers.
Brics can only stay relevant and provide credible leadership in a fast-changing international order when it addresses its many inner contradictions.