The world is full of economic alliances with acronyms. The EU, ASEAN, and the G7 are just some. The EU functions more as a nation-state, while most are much looser. The BRICS alliance, founded in 2009 by Brazil, Russia, India, and China (hence the name) has significant differences from the others.

Its primary goal is to create an alternative to the existing global economic order dominated by the West/US. In particular, it seeks to create alternatives to the dollar-dominated world trade system, SWIFT interbank payment system, and IMF & World Bank.

So far, it hasn’t made huge progress with this agenda. The US dollar’s role in global trade is firmly embedded. The only other currency that comes close in volume/importance is the Euro. As China doesn’t allow its currency to float freely or have open capital markets, the Chinese Renminbi can’t currently replace the dollar’s international role.

But is this about to change? The current US administration rejects much of the old global economic order. Ironic, considering it originally created it. Since 2009 China and Russia have even more reasons to want a global financial alternative the US doesn’t have a role in. Maybe the US is helping them to create it?