BRICS and the Shifting Global Order

The global stage is witnessing a seismic shift, and at the heart of it lies the BRICS bloc—a group of nations challenging the Western-dominated world order that has prevailed since the end of World War II. As of May 10, 2025, with markets still reeling from recent volatility and geopolitical tensions escalating, the BRICS countries are making headlines for their growing influence and ambitious plans. At Vorpp Capital, we’ve been tracking this development closely, especially as discussions around a potential BRICS currency gain traction. This article dives into what BRICS is, which countries are involved, who might join next, and the bloc’s push for its own currency. We’ll explore how this threatens the current Western-oriented world order, what the West can do in response, and whether a shift in global power is inevitable—potentially leading to a decline in the U.S. dollar’s status as the world’s reserve currency. Could this usher in a bi-polar world order with two superpowers sharing equal footing? Let’s unpack this complex topic and see what it means for investors and the global economy.

What Is BRICS? A Platform for the Global South

BRICS is an acronym for a group of emerging economies that came together to amplify their voice on the global stage. The bloc was initially formed in 2009 with Brazil, Russia, India, and China—coined as BRIC by Goldman Sachs economist Jim O’Neill in 2001 to highlight their rapid economic growth potential. South Africa joined in 2010, adding the “S” to make BRICS. In 2024, the group expanded significantly, welcoming Egypt, Ethiopia, Iran, Saudi Arabia, the United Arab Emirates (UAE), and Indonesia, reflecting a broader ambition to represent the interests of the Global South. Unlike formal organizations like the United Nations, BRICS operates as an informal coalition, focusing on economic coordination, diplomatic collaboration, and challenging the dominance of Western-led institutions like the World Bank and the International Monetary Fund (IMF).

The founding premise of BRICS was that the existing global order, shaped by Western powers after World War II, no longer adequately served developing nations. The group seeks to provide an alternative platform for economic and political cooperation, emphasizing principles like equality and consensus-based decision-making. Over the years, BRICS has launched initiatives like the New Development Bank (NDB) in 2014, often called the “BRICS bank,” to fund infrastructure projects without the stringent conditions imposed by Western financial bodies. The bloc’s annual summits—like the one held in Kazan, Russia, from October 22 to 24, 2024—have become a forum for discussing trade, investment, and, increasingly, ways to reduce reliance on the U.S. dollar in global transactions.

Member Countries and Potential Candidates

The current BRICS members span diverse regions and economies, representing a significant portion of the world’s population (atm about 46.9%) and economic output. The founding five—Brazil, Russia, India, China, and South Africa—bring varied strengths: China’s manufacturing might, India’s burgeoning tech sector, Russia’s energy resources, Brazil’s agricultural prowess, and South Africa’s mineral wealth. The 2024 expansion added Egypt, Ethiopia, Iran, Saudi Arabia, the UAE, and Indonesia, broadening the bloc’s geopolitical reach. Saudi Arabia, Iran, and the UAE are major oil producers, while Egypt and Ethiopia are key players in Africa, and Indonesia adds Southeast Asian heft. Together, these nations account for a substantial share of global trade and resources, positioning BRICS as a counterweight to Western economic dominance.

The expansion doesn’t stop there. Dozens of countries have expressed interest in joining, reflecting BRICS’ growing appeal. Potential candidates include nations like Venezuela, Argentina, Algeria, Nigeria, Thailand, and Turkey, among others. Posts on X have speculated that by the end of 2025, the bloc could grow to include as many as 30 new members, though such claims remain unverified. These aspirants are drawn by the promise of economic cooperation outside Western influence, access to the NDB’s financing, and the chance to trade in local currencies, reducing exposure to U.S. sanctions. However, expansion brings challenges—BRICS’ diversity, while a strength, also fuels internal divisions, as member states often have competing interests and geopolitical rivalries, such as those between China and India or Saudi Arabia and Iran.

The Push for a BRICS Currency: A Threat to the Dollar?

One of the most ambitious—and controversial—ideas coming out of BRICS is the proposal for a common currency to rival the U.S. dollar. The dollar has been the world’s reserve currency since the Bretton Woods agreement in 1944, dominating global trade and finance. It’s used in the vast majority of international transactions, giving the U.S. significant leverage through sanctions and monetary policy. BRICS leaders, frustrated by this dominance, have long advocated for “de-dollarization”—reducing reliance on the dollar to assert their economic independence and shield against Western sanctions, particularly after measures imposed on Russia following its invasion of Ukraine.

At the 2024 BRICS Summit in Kazan, discussions centered on creating a new currency, potentially called the “Unit,” backed by a basket of member currencies or even gold. The idea is to enable trade among BRICS nations without using the dollar, bypassing Western financial systems like SWIFT, which has been weaponized through sanctions. Brazil’s President Luiz Inacio Lula da Silva has been vocal, questioning why global trade must be dollar-based, while Russia and China have pushed for greater use of local currencies like the yuan and ruble. Some progress has been made—China and Russia already conduct much of their trade in their own currencies, and countries like India and the UAE have signed agreements to settle trade in rupees or dirhams.

However, the dream of a unified BRICS currency faces significant hurdles. The bloc lacks the cohesion needed for a shared currency—no common central bank, no fiscal union, and no macroeconomic alignment among members. Brazil struggles with political instability, Russia faces economic constraints from sanctions, India maintains capital controls, and China’s economic slowdown raises concerns. A new currency would also need global trust, financial transparency, and market depth—qualities the dollar has built over decades but BRICS currencies lack. While the bloc’s collective economic weight is substantial, surpassing the G7 in purchasing power parity, experts remain skeptical that a BRICS currency could dethrone the dollar anytime soon. Still, even incremental steps toward de-dollarization—like trading in local currencies—could erode the dollar’s dominance over time, potentially weakening the U.S.’s ability to impose sanctions and impacting its economy.

Threat to the Western-Oriented World Order

The rise of BRICS poses a direct challenge to the Western-oriented world order, often referred to as the Pax Americana, which has shaped global governance since the post-war era. Institutions like the IMF, World Bank, and G7 have long set the tone for economic policy, often prioritizing Western interests. BRICS, now representing a significant share of global population and economic output, seeks to rebalance this power dynamic, offering an alternative for the Global South. The NDB and initiatives like BRICS Pay—a payment system to rival SWIFT—aim to create a parallel financial architecture, reducing dependence on Western systems and giving member states more autonomy.

This shift threatens the West in several ways. Economically, a decline in dollar usage could reduce demand for U.S. assets, potentially leading to higher interest rates and inflation at home. Geopolitically, it weakens the West’s ability to enforce sanctions, a key tool of foreign policy—Russia and Iran, for example, see a BRICS currency as a way to blunt U.S. economic pressure. The bloc’s expansion, including oil-rich nations like Saudi Arabia and Iran, also gives it leverage over critical resources, echoing the 1973 OPEC embargo’s impact. China, as the bloc’s economic heavyweight, is driving this push, using BRICS to expand its influence, promote the yuan, and secure energy and supply chains against Western “decoupling” efforts.

However, BRICS’ internal divisions temper its threat. China’s dominance—accounting for a large share of the bloc’s economic output—creates tension with members like India, which competes with China for Global South leadership and maintains a border dispute. Brazil and South Africa, meanwhile, have deep trade ties with the West, making a full break unlikely. The bloc’s diversity, while a strength in representing the Global South, also hinders cohesive action, limiting its ability to fundamentally upend the Western order in the near term.

What Can the West Do? Cooperation or Confrontation?

The West faces a choice in responding to BRICS’ rise: confront the bloc head-on or seek cooperation to mitigate its influence. Confrontation has been the default—U.S. President Donald Trump, in early 2025, threatened 100% tariffs on BRICS nations if they pursued a new currency, a stance Brazil’s 2025 BRICS presidency has downplayed by focusing on local currency trade rather than a unified currency. Such threats risk backfiring, as they fuel the very de-dollarization sentiment the West seeks to curb, pushing countries further toward alternatives.

Cooperation, however, offers a more pragmatic path. The West could engage BRICS by reforming global institutions to better reflect the Global South’s interests—giving countries like India and Brazil more say in the IMF or World Bank, for instance. Inviting BRICS leaders to G7 summits, as was done in 2022, can bridge divides and reduce the bloc’s anti-Western narrative. Economically, the West could promote trade in euros or other currencies, diluting the dollar’s dominance on its own terms while maintaining influence. Diplomatically, fostering ties with BRICS members like Brazil and South Africa, which value Western partnerships, can prevent a full alignment against the West.

The shift in global power may be unavoidable—BRICS’ economic clout and resource control give it leverage the West can’t ignore. Cooperation doesn’t mean capitulation; it means adapting to a multipolar world where influence is shared. Confrontation, while tempting, risks accelerating de-dollarization and isolating the West, as nations seek alternatives to avoid sanctions or economic pressure.

The Decline of the USD as the World Reserve Currency

The U.S. dollar’s status as the world’s reserve currency is under scrutiny, with BRICS at the forefront of de-dollarization efforts. The dollar’s dominance—used in the majority of global trade—gives the U.S. unparalleled economic power, from sanction enforcement to low borrowing costs. But its share of global reserves has been declining as countries diversify into euros, yen, and even gold, partly due to sanctions on Russia and trade disputes with China. BRICS’ push for local currency trade—China and Russia trading in yuan and rubles, India settling with the UAE in rupees—signals a broader trend toward alternatives.

A BRICS currency, while unlikely in the near term due to internal challenges, could further erode the dollar’s role if it gains traction. Even without a unified currency, increased trade in local currencies reduces dollar demand, potentially leading to higher U.S. inflation, rising interest rates, and a weaker dollar over time. This isn’t just a BRICS story—globalization has made nations like India, Kenya, and Malaysia vocal about de-dollarization, seeking to trade in their own currencies or other benchmarks. The West must take this seriously; a declining dollar could reshape global finance, impacting everything from American households to international trade dynamics.

A Bi-Polar World Order: Possible or Unlikely?

The rise of BRICS, led by China, raises the possibility of a bi-polar world order—two superpowers, the U.S. and China, sharing equal footing. Historically, such a balance is rare. The Cold War came close, with the U.S. and Soviet Union as rival superpowers, but economic interdependence was minimal compared to today. Globalization has intertwined the world’s economies—China and the U.S. are deeply connected through trade, supply chains, and financial systems, making a true bi-polar split impractical. A BRICS-led bloc, even with China at the helm, lacks the cohesion to rival the West as a unified superpower; internal rivalries and economic disparities among members hinder a singular vision.

Moreover, the world’s interconnectedness complicates a clean division. Nations like Brazil and South Africa trade heavily with both the West and China, while India balances its BRICS membership with Western partnerships. A bi-polar order assumes two distinct blocs, but today’s reality is more multipolar—multiple power centers, from the EU to emerging economies, share influence. While BRICS can challenge Western dominance, it’s unlikely to create a neat bi-polar split. Instead, we’re heading toward a fragmented, multipolar world where cooperation, not confrontation, will determine who thrives.

Final Thoughts: Navigating a Multipolar Future

At Vorpp Capital, we see BRICS as a transformative force in the global order, challenging the Western-led system that has defined the past century. Comprising Brazil, Russia, India, China, South Africa, and new members like Saudi Arabia and Indonesia, with more candidates waiting in the wings, BRICS represents the Global South’s push for a fairer share of power. Its efforts to de-dollarize—through local currency trade and discussions of a BRICS currency—threaten the U.S. dollar’s reserve status, potentially reshaping global finance. The West can respond with confrontation, as seen in tariff threats, but cooperation—reforming global institutions and engaging BRICS—offers a better path to maintain influence in a multipolar world.

A bi-polar order with the U.S. and China as equal superpowers is unlikely; history and globalization suggest a more fragmented landscape where power is shared among multiple players. BRICS’ rise signals a shift, but its internal divisions and the world’s interconnectedness mean a complete break from the West isn’t on the horizon. For investors, this means adapting to a multipolar reality—diversifying beyond dollar-based assets, watching BRICS’ moves in trade and finance, and staying nimble as power dynamics evolve. The global order is changing, and navigating it will require both caution and collaboration.

Do not consider this article as financial advice. We only showcase our own opinion. Always do your own due diligence before investing in alternative (volatile) investment opportunities.