“China’s goal is bold: to weaken the dollar, which anchors 85 percent of global trade and 60 percent of reserves”
IN A Manila market, Linda Dela Cruz, a 38-year-old fish vendor, counts her peso earnings, her hands swift but her heart heavy. Fuel, rice, and ice for her catch cost more each week. “Everything’s pricier,” she sighs. “Saving’s impossible.” Linda’s struggles seem far from Shanghai’s financial chessboard, where China is challenging the US dollar’s global rule.
Yet her life is tied to this shift, driven by China’s Cross-Border Interbank Payment System (CIPS) and BRICS Pay, which could reshape the Philippines’ future.
China’s goal is bold: to weaken the dollar, which anchors 85 percent of global trade and 60 percent of reserves, giving the US unmatched power.
Beijing’s CIPS, linking 1,300 institutions across 110 countries, promotes yuan-based payments as a rival to SWIFT, the West’s $150 trillion transaction pipeline.
BRICS Pay, a blockchain-based system, aims to let Brazil, Russia, India, China, and South Africa trade in local currencies, bypassing the dollar.
This isn’t just about money—it’s about rewriting global influence.
Cracks in the money machine
CIPS and BRICS Pay are strategic weapons.
China seeks to shield itself from US sanctions, like those that cut Russia from SWIFT post-Ukraine invasion.
BRICS Pay could help sanctioned nations trade freely. With the BRICS bloc holding 45 percent of the world’s population and 35 percent of its GDP, success could dent the dollar’s dominance, curbing America’s financial clout.
But hurdles abound.
CIPS handles a fraction of SWIFT’s volume, and the yuan is just 3 percent of global payments.
BRICS Pay struggles to mesh systems like India’s UPI with Russia’s Mir.
Skeptics, including India, see political motives over economic gain. Western banks fear losing control and may push back with tariffs, as US signals in 2025 suggest. A split financial system could stall global growth, the IMF warns.
The Philippines’ human stakes
Linda’s rising costs reflect the Philippines’ vulnerability.
Dollar-based trade—70 percent of exports like electronics—drives the economy.
Overseas workers send $40 billion home, mostly in dollars, sustaining families like Linda’s.
A weaker dollar or stronger yuan could spike food and fuel prices, hitting vendors hardest.
The Philippines balances a US alliance with China’s economic pull.
China’s Belt and Road loans, often in yuan, fund infrastructure but risk debt traps.
CIPS and BRICS Pay may push Manila toward yuan trade, angering the US amid South China Sea tensions.
Exporter Eduardo, tempted by CIPS’s lower fees, fears US retaliation: “It’s cheaper, but risky.” His dilemma mirrors the nation’s—pragmatism versus loyalty.
Power plays and perils
China’s move counters US financial bullying, like asset freezes in Venezuela.
Emerging nations, burned by the 1997 Asian crisis, seek autonomy. CIPS and BRICS Pay could cut costs, even for US allies.
But China’s control over CIPS and Russia’s sanctions-dodging aims raise concerns.
A multipolar system risks market chaos, hurting small economies like the Philippines most.
Roadmap through the storm
The Philippines must act wisely:
Diversify Currencies: Trade in pesos, yuan, or euros via ASEAN pacts to reduce dollar reliance without China’s grip.
Build ASEAN Networks: Blend CIPS with regional systems like Thailand’s PromptPay for autonomy.
Protect Small Traders: Train vendors like Linda in digital payments to weather currency shifts.
Push Global Reform: Urge U.S.-led SWIFT and IMF changes to ease Global South burdens, weakening BRICS Pay’s allure.
Balance Superpowers: Deepen U.S. ties while engaging China, ensuring transparent loans.
Future beyond the dollar
Linda’s stall and the Philippines’ fate hinge on a world where money isn’t one nation’s scepter.
China’s CIPS and BRICS Pay signal a multipolar dawn—opportunity or entanglement.
The dollar’s reign wanes, and the Philippines must seize this shift for stability.
Imagine Linda counting pesos or yuan, each sale a step toward sovereignty.
Bold, people-first policies can make that real, ensuring vendors don’t just survive, but thrive.