St. Petersburg, June 2025 – Speaking at the St. Petersburg International Economic Forum on the high-level panel “Eco-Rethinking of the Global Financial System,” Vuk Jeremić, President of the Center for International Relations and Sustainable Development (CIRSD), delivered a stark warning about the risks posed by escalating global tensions to any serious attempt at international financial system reform.
“We cannot meaningfully talk about diplomacy, breakthroughs, let alone a grand new financial architecture if the world is on the brink of war,” Jeremić cautioned. “A serious escalation in the Middle East could further derail everything. And we might be days or perhaps even hours away from it.”
The panel was moderated by Sergey Rybakov, General Director of the Nature and People Foundation, and featured senior international figures including Tatiana Valovaya, Director-General of the United Nations Office at Geneva; Professor Zhang Wei, Director of the China Institute at Fudan University; and Professor Jeffrey Sachs, President of the Sustainable Development Solutions Network and member of the CIRSD Advisory Board.
Jeremić emphasized that meaningful reform of the global financial system is impossible without a significant de-escalation of great power rivalries, particularly between the United States and other emerging global actors.
Having served as President of the United Nations General Assembly and as Serbia’s Foreign Minister, Jeremić reflected on how dramatically the global order has shifted since the 2015 adoption of the Sustainable Development Goals (SDGs). He pointed to the end of the post-Cold War “unipolar moment” and the emergence of a multipolar world—one in which the United States no longer holds undisputed dominance in technology, military power, or monetary affairs.
"The US monopoly on top technology is gone. China is now on par—or ahead—in many areas. Militarily, the United States no longer has uncontested dominance. The dollar, while still very strong, is facing structural challenges," he said.
Jeremić endorsed Professor Sachs’ structural critique of dollar hegemony, but warned that Washington will not easily give up its monetary dominance.
“When Donald Trump threatens BRICS countries with 500% tariffs for challenging the dollar's status, we should take it seriously. The U.S. will defend its monetary monopoly with all available tools,” he argued.
He suggested that only China possesses the geopolitical, economic, and technological capacity to initiate a credible conversation about reforming the global monetary system.
“China didn’t blink at the launch of the US tariff wars—and earned its seat at the negotiating table. It’s now uniquely positioned to place the future of global finance on the agenda, and do so wisely and diplomatically,” Jeremić stated.
He also emohsized a recent speech by the Governor of the People’s Bank of China, which underscored the strategic role of the digital yuan in enabling trade outside of the U.S. dollar framework.
“Until systemic negotiations begin delivering results, alternative systems must become technologically viable. That’s why China’s push for central bank digital currency—with adequate ecosystems bulit in Shanghai and Hong Kong—is so crucial,” Jeremić emphasized.
Concluding his intervention on a sober note, Jeremić warned of the historical risks of unchecked escalation between great powers. Drawing a parallel with the events that led to World War I, he reminded the audience that global conflicts can erupt rapidly from localized tensions.
"We must not sleepwalk into disaster. Without diplomacy, without realism in great-power relations, even the best ideas for financial or ecological reform will collapse before they begin,” he said.
