Russian senior officials: Global financial turmoil has caused the dollar to lose trust, and the influence of BRICS countries is rising.

As the global financial landscape undergoes dramatic changes, the dominance of the US dollar is facing unprecedented challenges. Senior Russian officials have stated that global confidence in the dollar is collapsing due to rising debt, sanctions rebound, and a strong shift in the foundations of the global financial system caused by trust breakdown. At the BRICS summit held in Rio de Janeiro, Russian Foreign Minister Sergey Lavrov explicitly pointed out that Washington must acknowledge the declining global confidence in the dollar and emphasized that former US President Joe Biden and his administration have "been undermining the position of the dollar for years."

1. The Dollar Trust Crisis: Sanctions Rebound and Financial Politicization

Lavrov stated at the BRICS foreign ministers meeting that global trust in the US dollar has declined. He pointed out that US President Donald Trump had "directly accused" former US President Joe Biden and his administration of "undermining the position of the dollar for many years" even during the preparations for his inauguration.

Lavrov pointed out what he described as the politicization of the global financial system: "Due to illegal unilateral sanctions and the use of the dollar as a 'punishment' tool, the erosion of the global economic order has further intensified. The trust in the dollar as a once-reliable payment tool has been undermined." He believes that the U.S. can no longer rely on the globalist framework it once dominated. Lavrov explained: "President Trump does not hide his intentions - he defends America's economic interests in trade and investment - and does so openly. This further confirms that the model of globalization promoted by the U.S. for years under a neoliberal backdrop, and once accepted by many countries around the world, has in fact become ineffective." At the time of Lavrov's remarks, Trump recently threatened to impose a further 10% trade tax on countries supporting BRICS.

II. Domestic Fiscal Pressure in the U.S.: Sovereign Debt Hits Record Levels

Lavrov also drew attention to the domestic fiscal pressures in Washington, pointing out: "Even in developed countries, the situation is getting out of control—America's sovereign debt has reached a record $37 trillion and is still rising." The Foreign Minister stated that this debt burden undermines America's credibility and puts pressure on the global system.

However, some Western economists believe that due to the strong liquidity and institutional support of the US dollar, it remains indispensable, indicating that other alternative currencies still lack the scale and resilience of the current reserve currency. This also reflects the controversy surrounding the status of the US dollar, which, despite facing challenges, still has a deep foundation in the global financial system.

III. BRICS Summit: Seeking Cooperation and De-dollarization

Russian Foreign Minister Sergey Lavrov attended the BRICS summit held in Rio de Janeiro, Brazil, from July 6 to 7, 2025, while Russian President Putin attended online.

During the summit, Russian President Putin expressed via video link to the BRICS countries that strengthening cooperation among BRICS and using national currencies is very important. He also commented that the liberal globalization model is becoming outdated. This shows that the BRICS countries are actively seeking cooperation in economic and financial areas, and promoting the process of de-dollarization to respond to the unilateral policies of the United States.

Conclusion:

The warning issued by senior Russian officials at the BRICS summit highlights the global decline in trust in the US dollar and the far-reaching impact of geopolitical dynamics on the global financial landscape. As US debt continues to rise and unilateral sanctions rebound, BRICS countries are actively seeking to strengthen cooperation and promote the use of their own currencies to undermine the dominance of the dollar. This global financial turmoil will be a key observation point for future international relations and economic development.