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Multipolarity

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Multipolarity

Multipolarity represents BRICS vs Dollar

In recent years, we have witnessed a significant shift in the global order, moving away from a unipolar system dominated by the USA and the EU, toward a multipolar world where regional powers and geographical proximity are increasingly influential. This transition has been accelerated by a series of strategic miscalculations, particularly those related to the SWIFT financial system, which have inadvertently spurred the formation of alternative financial networks.

Key notes

  • Shifting Power Dynamics: The global order is transitioning from a unipolar system dominated by the USA and EU to a multipolar world where regional powers are gaining influence, driven by strategic miscalculations in the SWIFT financial system.
  • Emergence of BRICS Financial Systems: The freezing of Russian assets during the Ukraine invasion highlighted the risks of relying on Western financial institutions, prompting countries like China, Russia, Brazil, India, and South Africa to create their own financial networks, challenging the dominance of the US dollar.
  • Investment Uncertainty: As the role of the US dollar becomes less certain in a multipolar world, investors face increased volatility and the need for diversified strategies to navigate the emerging global landscape.

The creation of the BRICS financial transfer system is a strategic response to the geopolitical dominance of the SWIFT network, which became evident during Russia’s invasion of Ukraine. When Western powers froze Russian state assets—and extended these measures to individuals and businesses simply for being Russian—it sent shockwaves globally. Nations realized that Western financial institutions could no longer be trusted as neutral safe havens.

In response, BRICS countries like China, Russia, Brazil, India, and South Africa started building their own financial systems, breaking away from Western control. This marks a major shift, challenging the long-standing dominance of the US dollar.

As the world transitions to a multipolar order, uncertainty follows. Without a clear successor to the dollar, global markets could face increased volatility. Slowly but surely, the context in which traditional asset management strategies once made sense is changing: the world is no longer unilateral, restrictions are becoming the norm rather than the exception, and rethinking strategies before challenges arise saves problems, time… and hard-earned fortune!

As the world adjusts to this new order, we are proud to offer a range of services designed to navigate uncertainties with strategies tailored to a shifting multipolar landscape, considering a wide range of emerging alternatives

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