In today’s interconnected world, the power to influence economies extends beyond military might—it is increasingly rooted in financial strategies. The United States, historically the architect of the global financial order, has turned its economic dominance into a tool of political coercion. This approach, while effective in the short term, is unsettling global markets and prompting BRICS+ nations to seek alternatives that could reshape the future of international finance.
Economic Coercion: The New Battlefield
Recent U.S. policy decisions highlight a growing trend: leveraging economic tools such as sanctions, tariffs, and regulatory controls to force compliance from other nations. The U.S. dollar, which underpins approximately 88% of global trade transactions, has long been a pillar of stability. However, when weaponized for political gain, it introduces volatility and forces countries to choose between economic security and political sovereignty.
This tactic doesn’t just affect governments; it disrupts global supply chains, inflates costs, and erodes investor confidence. Businesses operating in international markets face unpredictable risks, as decisions made in Washington can trigger economic ripple effects worldwide.
The Rise of Alternatives: RMB and Beyond
In response to this financial coercion, BRICS+ countries are accelerating efforts to diversify their economic partnerships and reduce dependency on the USD. The Chinese Renminbi (RMB), once a minor player, now accounts for 4–5% of global transactions, with growth rates of 10–15% annually. In 2022, global trade volumes surpassed $20 trillion, and RMB’s share in cross-border payments surged by 20% as countries sought to hedge against U.S. policy unpredictability.
This shift isn’t theoretical; it’s happening now. BRICS+ nations are fostering financial cooperation through new payment systems, bilateral agreements, and local currency trade frameworks. These developments signal not just confidence in the RMB but also the real potential for other currencies to challenge the USD’s dominance if current trends continue.
The Cost of Economic Weaponization
Weaponizing the global economy is a double-edged sword. While it may yield short-term geopolitical gains, it undermines the principles of free trade and financial stability. For businesses, this translates into higher operational costs, disrupted trade routes, and a volatile investment climate. For nations, it threatens economic sovereignty and incentivizes the development of parallel financial systems.
If the current trajectory persists, the global financial landscape could shift dramatically. The USD’s dominance, once seen as unassailable, faces growing challenges from diversified, resilient economic alliances within BRICS+ and beyond.
A Call for a Balanced Financial Future
The emergence of a multipolar financial world is no longer a distant possibility—it’s an unfolding reality. For those of us engaged in finance across BRICS+ countries, this transformation presents both challenges and opportunities. We must advocate for economic policies that prioritize stability, fairness, and mutual growth over coercion and unilateral dominance.
For deeper insights into how the U.S. has historically wielded economic power as a political weapon, I recommend Underground Empire: How America Weaponized the World Economy by Henry Farrell and Abraham Newman. The book provides a comprehensive analysis of the mechanisms and consequences of economic coercion, offering valuable context for understanding today’s shifting financial dynamics.
The future of global finance is being written now. If economic coercion remains the strategy of choice, alternative currencies like the RMB will continue to rise, challenging the USD and ushering in a new era of financial balance and shared prosperity.
Nasir Kazeroun
Brics Federation