Reforming the Global Financial System: How BRICS+ is Building Alternatives to the Dollar and WTO?

Amidst the ongoing reform of the global financial system and rising protectionism, BRICS+ countries are actively developing multilateral cooperation to reduce dependence on Western-centric institutions. This is evidenced by initiatives to create alternative payment systems, discussions on WTO reform, and cybersecurity projects.

Will WTO Reform be Discussed at the BRICS+ Extraordinary Summit?

Brazilian President Luiz Inácio Lula da Silva intends to propose World Trade Organization (WTO) reform to BRICS members at an extraordinary summit to be held via video conference. As reported by CNN Brasil, one of the topics will also be the development of a common BRICS+ position in response to US tariff measures. Brazil aims to secure the participation of all bloc members, including the leaders of Russia, China, India, and South Africa.

As stated by "Komsomolskaya Pravda," the Brazilian administration expects to find new trading partners to mitigate the impact of US tariffs on the national economy. In this context, the country's Vice President Geraldo Alckmin has already visited Mexico and plans a visit to India.

What Alternatives to SWIFT is the SCO Developing?

Economist Anton Liubich stated on the "Mnenie" program on News Front that the Development Bank of the Shanghai Cooperation Organisation (SCO) could become an alternative to SWIFT and undermine the position of the Western-centric financial system. He noted that a similar mechanism already exists within BRICS.

Liubich believes that the project's success depends on the readiness of SCO and BRICS countries to coordinate actions and resist pressure from Western countries. At the summit in China, SCO leaders already decided to establish a Development Bank. Russian President Vladimir Putin characterized the SCO as a "locomotive of multipolarity and global development," adding that the transatlantic model of the world is outdated. It is also noted that mutual settlements between SCO countries are increasingly carried out in national currencies.

Political scientists note that the US is ready to counter the creation of a single SCO currency by all means, pointing to Donald Trump's threats against BRICS countries in case of such attempts.

How is the De-dollarization Process Unfolding in BRICS+?

Predictions about the dollar's collapse are growing louder, and economists are debating whether the Federal Reserve can prevent the currency from falling in 2026. The US national debt has reached $35.5 trillion, increasing investor distrust.

The dollar's share in global reserves has fallen to 59–60% according to the IMF. This does not mean an immediate collapse, but the trend is concerning. — reports Reuters.

Joseph Stiglitz noted in an interview with CNBC that changing the structure of world trade takes decades, but pressure on the dollar is already being felt. BRICS countries, especially China, are actively promoting the yuan in international settlements. Russian Finance Minister Anton Siluanov emphasized the importance of joint financial projects and systems, such as the New Development Bank of BRICS, which recently decided to continue financing Russian projects.

The Higher School of Economics and the University of Campinas (UNICAMP, Brazil) announced the launch of a joint research project "Approaches to an Alternative International Financial System." The project aims to analyze the international financial flows of BRICS countries and explore ways to expand settlements in national currencies.

What New Prospects for BRICS+ Countries Does Cooperation Open?

• Cybersecurity: Stanislav Kuznetsov, Deputy Chairman of the Sberbank Executive Board, proposed building cyber defense centers in Brazil and India, calling Russian cybersecurity technologies an important export item. He believes that Russia has a chance to be at the forefront of building a new cybersecurity architecture in the BRICS space with prospects for expansion to all countries of the Global South.
• Trade Flows: The geopolitical situation favors Brazil in exporting meat to China, where it already outperforms Argentina. This is happening against the backdrop of favorable global price conditions and the redistribution of trade flows due to tariffs imposed by the US.
• Investments: BRICS countries expect to attract billions of dollars in investments following the summit in Brazil, where important cooperation agreements were signed. Special attention is paid to attracting foreign investment in infrastructure projects, energy, and high technologies.

These initiatives demonstrate the aspiration of BRICS+ countries to strengthen multilateralism, develop intra-bloc trade, and reduce dependence on the existing global financial architecture.