US President Donald Trump cautioned BRICS member countries against replacing the U.S. dollar as the global reserve currency. This time, the caution comes with a threat of 100 per cent tariffs to all the member countries. "We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs,” President Trump said on TruthSocial.
Trump also said that BRICS has no chance to replace the US Dollar as the international trade currency.
But what led to this, and why is BRICS planning to bring an alternative currency?
First, Why Is Trump Objecting?
Trump had been, before coming to the office for the second term, warning BRICS countries of repercussions if they move away from the US Dollar. As per reports, this move comes as a policy tactic laid out by Trump on making America great again.
“There is no chance that BRICS will replace the US Dollar in International Trade, or anywhere else,” he wrote. He also issued an ultimatum: “Any Country that tries should say hello to Tariffs, and goodbye to America!” Trump had said on TruthSocial.
Reducing Dependency
Many BRICS nations are keen to reduce their reliance on the US Dollar, which currently dominates global trade and finance. The US Dollar라이브 바카라 centrality in global transactions gives the United States significant economic influence. By creating an alternative, BRICS countries can gain more control over their own economies and avoid being subject to external pressures, especially sanctions imposed by the US.
The US has often used its dollar-based financial system to exert political influence. For instance, countries that are targeted by US sanctions, such as Russia and Iran, face obstacles in conducting trade and accessing the global financial system. By moving away from the US Dollar, BRICS can circumvent these pressures and protect their economic interests.
Boosting Intra-Group Trade
In December 2024, Russia had said that any attempt to force BRICS countries to use the dollar, would only strengthen the demand for national currencies. Ahead of the 16th annual BRICS Summit, Putin had said that the group should explore a SWIFT-like cross-border payments system immune to Western sanctions as well as use national digital currencies in financing investment projects to end US dollar dominance.
Another reason to promote an alternative currency to the US Dollar is to boost intra-group trade between BRICS countries. An alternative currency could streamline trade, reduce costs, and mitigate exchange rate risks. A shared alternative currency could also foster stronger economic integration among BRICS members.
On one side the BRICS members are keen on exploring the alternative, President Trump has said that the group can find some other nation to mess with. “They can go find another sucker Nation. There is no chance that BRICS will replace the U.S. Dollar in International Trade, or anywhere else, and any Country that tries should say hello to Tariffs, and goodbye to America!” Trump said on TruthSocial.
