The Banking Executive Magzine - July 2025 Issue

BRICS 2025 major force in global affairs. Its im- pact on the world balance of power in 2025 is both strategic and sym- bolic, signalling a shift away from Western dominance toward a more multipolar order. BRICS nations are increasingly resist- ing US-led geopolitical and eco- nomic mandates, forming a defensive coalition that promotes sovereignty and non-intervention. The bloc condemned US strikes on Iran, marking a rare moment of diplomatic unity and asserting its role as a voice for the Global South. With 10 full members and over 20 partner or aspiring countries, BRICS is be- coming a magnet for nations seeking alternatives to Western alliances. BRICS is actively working to reduce reliance on the US dollar, with initia- tives like BRICS Pay and increased gold reserves among member states. The bloc now accounts for over 35% of global GDP and controls signifi- cant shares of oil and rare earth mar- kets. In response to BRICS’ growing influence, the US has imposed heavy tariffs, especially under President Trump, signalling economic push- back against the bloc’s ambitions. Political systems range from democ- racies to autocracies, and economic disparities between members (e.g., China vs. Ethiopia) complicate con- sensus, building. While China and Russia push for a stronger anti-Western stance, India and Brazil prefer a more balanced approach focused on economic co- operation. BRICS advocates reform of global in- stitutions like the United Nation (UN) and World Trade Organization (WTO), aiming to give developing nations more influence. Through the New Development Bank and other tools, BRICS offers fi- nancing without Western, style con- ditionality. In essence, BRICS 2025 reflects the aspirations of a diverse set of nations to redefine global governance, chal- lenge entrenched power structures, and form a space for new voices in international decision-making. IMPACT OF BRICS 2025 ON US DOLLAR DOMINANCE The BRICS bloc’s push to challenge the US dollar’s supremacy has inten- sified in 2025, but the outcome is far from straightforward: • BRICS Pay & Alternative Systems: The bloc has launched initiatives like BRICS Pay and the BRICS Bridge to facilitate trade in local currencies and bypass SWIFT. • Gold, Backed Currency Proposal: A new BRICS currency backed by commodities like gold and oil is under discussion, aiming to offer stability beyond fiat systems. • Expansion Strategy: With new members like Egypt, ISSUE 199 JULY 2025 the BANKING EXECUTIVE 45