Russia has rejected claims from Trump, who threatened tariffs against BRICS economies for their economic strategies, insisting that the alliance has no plans to challenge the superiority of the US dollar.
According to Russia, former President Donald Trump’s tariff threats do not worry the BRICS because their economic strategies do not aim to challenge the US dollar.
According to Dmitry Peskov, the Kremlin BRICS countries do not develop a new currency system to replace dollar dominance. BRICS officials tell Reuters through Dmitry Peskov that they do not work towards making a shared market currency. Peskov stated:
“The point is that BRICS is not discussing creating a common currency, nor has it ever done so.”
BRICS’ Vision for Financial Cooperation
The group forms investment platforms to let developing nations work together financially. BRICS wants to lessen reliance on Western banks while avoiding confrontation with US dollar dominance.
BRICS started in 2009 by focusing on economic cooperation among its members. Many countries, including Brazil, now want to discuss creating new money systems to avoid severe dollar exchange rate shifts.
In October 2024, BRICS nations considered launching digital payment settlements using their new Unit currency. Washington feared replacing the US dollar might weaken its current position in world trade.
Before running again for the United States presidency, Trump announced that nations intending to create a non-dollar alternative would suffer major economic sanctions. Trump stated that watching the BRICS Countries move away from the dollar won’t happen anymore, as he disclosed harsh customs penalties against nations following this strategy.
According to him, BRICS cannot replace the US dollar anywhere, as any country choosing this path must face a damaging economic response.
US Policy on Digital Currency
According to Peskov, Trump had previously made these same economic threats during his presidency. Peskov believes that previous presidential hopefuls like Trump made similar talk before assuming office. American experts should present the BRICS Initiative fully to help President Trump understand it better. Peskov said:
“In all likelihood, US experts probably need to explain the BRICS agenda in more detail to Mr. Trump.”
Throughout his Jan. 23 executive order, Trump confirmed that the United States remains committed to supporting the dollar’s role as digital finance industry leader. The directive protected the growth of stablecoins linked to U.S. dollars while outlawing CBDCs as legal tender in America.
European officials are pursuing a project to develop digital currencies. European Central Bank member Piero Cipollone promotes continual progress toward a digital euro to make Europe more independent from financial control, as the EU recently delisted USDT in December 2024.
BRICS countries are working to enhance their economic connections, although they have not created a new currency yet. Their progress challenges the existing balance of financial power. New investment paths and digital money options create slow changes to the US dollar’s power in world trade, whether the U.S. leadership accepts these changes.
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