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Since 2008, when the global financial crisis hit the global economy—originating in Wall Street, USA—many questions have been raised about the future of the U.S. dollar as a reserve currency and as a medium of international transactions. Various global alliances have attempted to break free from the dominance of the dollar, but the SWIFT system (Society for Worldwide Interbank Financial Telecommunication) has remained a major obstacle. This system requires that all global payments and financial transactions pass through the United States, maintaining American influence over international finance.
As a response, BRICS—which stands for Brazil, Russia, India, China, and South Africa—has made several attempts to develop an alternative financial system to replace SWIFT. In the most recent BRICS Summit held in October 2024, member nations pushed forward plans to create a new inter-bank transaction system, aiming to free themselves from SWIFT—a Western-controlled mechanism—and enable transactions without relying on the U.S. dollar, U.S. policies, or economic sanctions.
This initiative has attracted significant attention from economists, financial experts, governments, the private sector, and global media. However, Western financial institutions, such as the International Monetary Fund (IMF) and the World Bank, are reportedly implementing policies to obstruct the development of this alternative system.
A Rivalry Built on Strength and Fear
The rivalry between the West and BRICS is not just a financial struggle; it is also a geopolitical competition. BRICS nations represent the majority of the global population, and if they succeed in the de-dollarization process, it could mark the beginning of the decline of the U.S. dollar’s dominance and a potential shift in global financial power toward BRICS.
At the same time, both sides harbor fears:
Western powers fear the potential collapse of the dollar’s global supremacy and the rise of a new economic order dominated by BRICS.
BRICS nations are also cautious, as their proposed financial system is still in an experimental phase, with its principles, capabilities, and advantages yet to be fully tested within BRICS countries and their allied partners.
The future of global financial power remains uncertain, and the outcome of this financial rivalry between BRICS and the West will significantly shape the next era of international trade, investment, and monetary policies.
Prof. Dr. Hussein Suleiman Mohammed Ahmed
Economic Expert, AGCFSEDCFounder & CEO
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