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The rise of BRICS: The end of dollar dominance in global economic arena

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In the current changing world, the BRICS group has emerged as a new player in the global political and economic arena. The key players in this group are Brazil, Russia, India, China, and South Africa, and other countries have recently joined this group, including Saudi Arabia, Egypt, Iran, the United Arab Emirates, and Ethiopia.

This variety of countries has increased the strength of this group in terms of politics, economy and geography. These countries, which account for more than 45pc of the world’s population and 26.98pc of the world’s gross domestic product, play an important role in global political and economic developments. In this sense, BRICS is considered as an influential factor in economic and political developments.

The tendency of new countries to join this platform shows their desire to reduce their dependence on the US dollar and western markets. Thus, BRICS seeks to create a common currency to strengthen economic cooperation and facilitate trade between member countries, which can replace the dollar in economic exchanges in the future.

Reducing dependence on the dollar:

The dominance of the US dollar over the world economy began after the end of World War II and the establishment of the Bretton Woods system in 1944, in which the dollar was introduced as the main currency for international trade, but this dominance ended with the abandonment of the gold standard in 1971.

Therefore, one of the main goals of the BRICS countries to create a common currency is to reduce dependence on the US dollar as a global currency and its dominance in international trade. BRICS member countries seek to remain immune from currency fluctuations and US economic sanctions.

The strength of economic cooperation: 

The creation of a common currency can help facilitate trade between BRICS countries and prevent additional costs related to currency conversion.

This issue can increase the competitiveness of the goods and services of member countries in domestic and foreign markets and promote regional trade in a faster and cheaper way. Increasing trade between member countries directly contributes to economic growth.

Strengthening the political position:

The BRICS countries seek to strengthen their position in the international arena and reduce the influence of Western powers and challenge the dominance of the dollar. A common currency can help strengthen international cooperation and representation of these countries in the global financial system. Building stronger ties between member states can also help strengthen them on the world stage.

Attracting and facilitating investment:

By creating a common currency and ensuring financial stability, the attraction of foreign investment will be boosted. Foreign investors can easily cooperate in many projects both independently and jointly because challenges related to costs and other currency conversion problems have been resolved, this will help facilitate trade and investment for BRICS members.

An introduction to the prerequisites for creating a new currency for BRICS members

Creating a common currency for BRICS members can help strengthen economic cooperation and reduce dependence on traditional currencies such as the US dollar.

However, certain prerequisites are necessary for this initiative to succeed. These prerequisites include strong economic cooperation among the member countries, political stability, creating a coherent financial system and suitable legal arrangements for the diverse economy of the members.

Providing these above conditions can pave the way for the adoption and effective use of the new currency and help to strengthen the position of BRICS in the global financial system.

Prerequisites:

To create a common currency, the BRICS countries need certain conditions, including providing a suitable platform for strong economic cooperation among the member countries, economic diversity, cohesion to create a financial system, and political stability, which is the most important pillar of this prerequisite. In order for the new currency to be implemented, the member countries must reach full economic convergence. This convergence includes common understanding and agreement on financial, commercial and economic policies.

Political support:

Creating a common currency requires strong political support from the BRICS leaders. Despite the symbolic support for the new currency at the meeting of the BRICS members in Russia, the members of the group must remain steadfast on the political support of this issue, otherwise it can cause difficulties in the process of this joint project.

Challenges: Major differences in size and economic structure

One of the main challenges in creating a BRICS common currency is the economic and financial differences between member countries.

BRICS countries have different economic structures and these differences can lead to conflicts in financial and currency policies.

For example, China and India as larger and faster growing economies in BRICS will have a high capacity to influence common policies, while the economies of Russia, Saudi Arabia and Iran are dependent on natural gas and oil resources.

Brazil and South Africa both have smaller economies and are relatively dependent on certain industries such as agriculture, mining and raw materials.

Ethiopia is a country that has one of the highest economic growth rates in Africa, and agriculture plays an important role in the Ethiopian economy, and this country is recently trying to become a commercial and industrial center in East Africa.

As the second largest economy in the world, China is considered the largest and most industrialized economy and the driving force of BRICS, which undoubtedly plays a dominant role in the economy of this group.

This situation can lead to more dependence of member countries on China and economic differences between members; Because smaller countries may not be able to keep up with the speed of growth and economic complexity of China.

AMERICA

Trump continues to fill his cabinet with Israel supporters

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President-elect Donald Trump continues to shape his cabinet, set to take office in January. Trump has nominated South Dakota Governor Kristi Noem to lead the Department of Homeland Security. She will work closely with Border Czar Tom Homan to “secure the border and ensure that our American homeland is safe from our enemies,” Trump stated.

Kristi Noem, a devout Christian and the first woman elected governor of South Dakota, is now in her second term. Reflecting on her leadership in South Dakota, Trump highlighted Noem’s dedication to border security: “Kristi has been very strong on border security. She was the first governor to send National Guard troops to aid Texas during the Biden Border Crisis—a commitment she’s upheld eight times.”

Noem has faced criticism for controversial remarks suggesting South Dakota’s indigenous tribes benefit from the drug cartel industry. This statement led to her being banned from all nine reservations in the state.

Although not a border state governor, Noem has consistently taken a tough stance on immigration. In 2010, she supported an effort to block the Obama administration’s lawsuit against Arizona’s immigration law. During Trump’s first term, she called for punitive actions against sanctuary cities that refuse to cooperate with federal immigration authorities.

Noem is also known as a strong supporter of Israel. Earlier this year, she signed a bill mandating that the International Holocaust Remembrance Alliance’s (IHRA) definition of anti-Semitism be used in discrimination investigations. The bill, titled “Ensuring the Safety of God’s Chosen People,” garnered praise from former Israeli Foreign Minister Israel Katz, who called Noem a “true friend of Israel.”

In March 2024, Noem faced a lawsuit from Travelers United, a consumer advocacy group, after endorsing a Texas-based cosmetic dentist without disclosing a financial relationship. Travelers United claimed Noem had begun “working as a social media influencer,” promoting services without transparency. Noem clarified on X (formerly Twitter) that she “never received any money” for these alleged endorsements.

New Israeli Ambassador Huckabee: ‘There is no such thing as a Palestinian’

Donald Trump announced that Mike Huckabee, former Arkansas governor, will serve as U.S. ambassador to Israel. A long-time ally of Israeli Prime Minister Benjamin Netanyahu, Huckabee has consistently supported Jewish settlers and backs Israel’s claim to annex parts of the occupied West Bank.

“Mike Huckabee loves Israel and the people of Israel. He will work tirelessly for peace in the Middle East,” Trump stated. Huckabee, an evangelical pastor and host on the Trinity Broadcasting Network (TBN), is a staunch defender of Israel’s historical rights in the West Bank and believes in Israel’s right to annex this region.

Fox News host Hegseth tapped to lead Pentagon

Trump’s selection of Fox News host and former military officer Pete Hegseth as head of the Pentagon surprised many. Hegseth, a vocal America First proponent, lacks traditional government or Pentagon experience, sparking discussion on Trump’s unconventional choice.

“Pete is tough, smart, and a true believer in America First. With Pete at the helm, America’s military will be great again, and our enemies will take notice,” Trump remarked.

Though Hegseth’s selection deviates from Trump’s other traditional security appointments, he has gained Trump’s respect through his book, The War on Our Warriors, which criticizes left-wing attitudes toward U.S. troops. Hegseth is a decorated Army combat veteran and former CEO of Concerned Veterans for America, a group funded by the Koch brothers that advocates for outsourcing veterans’ healthcare.

Hegseth also garnered Trump’s favor through his advocacy for the pardons of service members convicted of war crimes, including 1st Lieutenant Clint Lorance and Major Mathew Golsteyn.

CIA appointment: Ratcliffe’s anti-Iran stance

John Ratcliffe, former Director of National Intelligence, has been appointed CIA Director, reinforcing Trump’s hardline stance against Iran. Ratcliffe replaces Bill Burns, who led Biden’s attempts to broker ceasefires in Gaza.

An outspoken critic of Biden’s foreign policy, Ratcliffe has accused the administration of downplaying intelligence on Hamas to avoid escalation. He argues that deprioritizing Middle Eastern intelligence has left the U.S. vulnerable to terrorist threats. Ratcliffe also alleged Iranian interference in the 2020 election, accusing the regime of trying to “foment social unrest” in the U.S.

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Ukraine offers natural resources to win Trump’s support

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The Ukrainian government’s “victory plan” for the incoming Donald Trump administration seeks to influence the US president-elect by highlighting potential business deals, access to raw materials, and troop deployments.

According to The Financial Times (FT), Ukrainian and European officials report that Ukraine’s allies in Europe and the US, including senior Republicans, are consulting on how best to propose initiatives that encourage closer cooperation with Kyiv rather than cut essential aid to the country.

These proposals stem from concerns among Ukrainian and European officials that Trump may move quickly toward a peace deal with Russia, potentially jeopardizing Western support for Ukraine.

Two of the ideas reportedly presented to Trump are outlined in Volodymyr Zelensky’s “victory plan.” They were later presented to the Ukrainian president during his meeting with Trump in New York in September.

One proposal suggests replacing some US troops stationed in Europe with Ukrainian forces after the war ends. The other, initially conceived by Republican Senator Lindsey Graham, proposes sharing Ukraine’s critical natural resources with Western partners, according to sources involved in drafting Zelensky’s plan.

A source familiar with the meeting said Trump expressed interest in these two points.

Ukrainian business leaders are also in talks with the government about granting Trump “investment screening” powers that would allow him to select who can do business in the country. An insider described this concept as “ABC—anybody but China,” a stance believed to resonate with Trump.

Certain Ukrainian industries, particularly those relying on Chinese technology and materials like telecommunications, could transition to US suppliers, potentially attracting Western investment. While still in its early stages, some business leaders close to the presidential administration believe this idea could appeal to Trump.

After Trump’s re-election last week, Zelensky reported a “great” first phone call. However, officials in Kyiv and its allies worry the US could reduce military support when Republicans take office in January.

Officials added that Ukraine and its allies fear Russian President Vladimir Putin, strengthened by Russia’s battlefield successes, may “drive a hard bargain” and pressure Washington into a peace deal favoring Moscow.

A person involved in drafting Kyiv’s proposal remarked, “The first to blink loses this game. Putin thinks he is on a winning track and can secure everything he wants.”

Meanwhile, European officials are concerned about being excluded from Trump-led negotiations and lacking influence over any potential solutions that could impact European security in the medium term.

Western allies have reacted somewhat indifferently to the “victory plan,” especially regarding the call for NATO membership for Kyiv and advanced weapons support.

An individual involved in the planning stated that Ukraine began drafting its proposals over the summer “to establish our narrative before Trump establishes his.”

Long frustrated by President Joe Biden’s reluctance to escalate military support, Kyiv hopes Trump will find the points specifically tailored for him compelling.

“The level of dissatisfaction with the Biden administration had reached a point where they felt it was time for change, and that this change [to Trump] could be beneficial,” the source said.

Oleksandr Merezhko, chairman of the Ukrainian parliament’s foreign affairs committee, described the offer to the incoming US president as “a strategic move to demonstrate that Ukraine is not a burden on the West.”

“Trump wants to be a winner, not a loser. To be a winner, he needs to show Putin his place,” Merezhko added.

Sources also indicate that Kyiv aims to “appease the Trump camp” by replacing Oksana Markarova, its ambassador to Washington. Republican House Speaker Mike Johnson had called for Markarova’s dismissal after she organized an all-Democrat visit to a US munitions factory for Zelensky in September.

Former Foreign Minister Dmytro Kuleba was reportedly offered the post but declined.

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Donald Trump taps Marco Rubio as his Secretary of State and Mike Waltz as National Security Advisor

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President-elect Donald Trump continues to assemble his cabinet, recently filling two critical posts: Secretary of State and National Security Advisor.

Florida Senator Marco Rubio has been appointed U.S. Secretary of State. Known for his tough stance on China, Iran, Cuba, and Venezuela and as a staunch supporter of Israel, Rubio’s appointment highlights a foreign policy direction aligned with Trump’s hardline approach on international issues.

Rubio, who has previously questioned U.S. aid to Ukraine, recently suggested that the war has reached a stalemate and should be “brought to an end”:

“I think the Ukrainians have been incredibly brave and strong in standing up to Russia, but at the end of the day, what we’re funding here is a stalemated war, and it needs to be brought to a conclusion. I think there should be some common sense here,” he added.

Rubio also argued that “you don’t have to be a fan of Vladimir Putin to end the war,” indicating a pragmatic view of the Ukraine-Russia conflict.

Rubio’s ‘axis of evil’: China, Iran, Cuba, Venezuela

Rubio, a prominent China hawk sanctioned by Beijing in 2020 for his stance on Hong Kong protests, has consistently advocated for a firm U.S. stance against Chinese influence. In 2019, he called on the Treasury Department to launch a national security review of TikTok’s acquisition of Musical.ly, leading to an investigation and eventual divestment order.

As the ranking Republican member of the Senate Intelligence Committee, Rubio has also pressured the administration on Huawei, calling for a complete sales block after the sanctioned Chinese tech giant released a new laptop powered by Intel’s AI processor chip.

Waltz: A decorated Green Beret advocating for strong U.S. global role

Mike Waltz, a decorated Green Beret and Army veteran, brings extensive experience to his role as National Security Advisor. Waltz’s military service and work at the Pentagon are detailed in his book, The Warrior Diplomat: The Wars of a Green Beret from Washington to Afghanistan.

Since his election to Congress in 2018, Waltz has served on Armed Services, Foreign Relations, and Intelligence Committees. His views on U.S. national security and foreign policy align with Republican perspectives, affirming the key role of the United States in global affairs.

While Waltz has encouraged NATO allies to increase defense spending, he has refrained from endorsing Trump’s occasional calls for the U.S. to withdraw from NATO. “Look, we can be allies and friends and have tough negotiations,” he stated recently.

Waltz: China hawk and advocate for stronger sanctions on Russia

Waltz believes the U.S. should continue supporting Ukraine, though he recently recommended a reassessment of financial support. Known for his tough stance on China, he has argued that the U.S. should prepare for potential conflict in the Pacific and sponsored legislation to reduce dependence on critical minerals from China and protect American universities from Chinese espionage.

Following the U.S. withdrawal from Afghanistan in 2021, Waltz frequently criticized President Joe Biden and the White House. In a recent NPR interview, he argued that it is “perfectly reasonable” to seek a diplomatic resolution to the war in Ukraine.

Waltz suggested that the U.S. could gain leverage over Russian President Vladimir Putin by imposing energy sanctions on Russia and increasing U.S. energy exports. “His economy and his war machine will dry up very quickly. I think that would bring Putin to the table,” he remarked, hinting that long-range weapons supplied to Ukraine could be used for strikes deeper into Russian territory.

Waltz: Bridging the gap between the Pentagon and Silicon Valley

Waltz’s new role as National Security Advisor could lead to stronger collaborations between the Pentagon and Silicon Valley. He advocates for a cultural shift in defense procurement and innovation, saying, “There are a lot of new technologies coming out of Silicon Valley and elsewhere that are really itching to help with our defense and security problems, and they can’t get through the bureaucracy.”

He concluded, “New leadership is essential, and a cultural change is needed.”

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