TOI correspondent from Washington: US President-elect Donald Trump on Saturday called for a “commitment” from the BRICS countries, which include China, India and China Russiathat they will not try to create a new currency or support another currency to replace the “powerful” currency. US dollarsIf that doesn’t happen, he warned they would face 100 percent tariffs and be denied access to the “wonderful” U.S. economy.
The provocation for Trump’s sudden tirade was not immediately clear, but several skeptics of the long-term viability of the U.S. economy based on the dollar’s dominance have discreetly begun exploring other currencies and methods of global trade. The move is being driven by Russia, which is reeling from crippling US sanctions, and China, which hopes to displace the US as the preeminent power in the world.
The expanded Brics alliance includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates. Turkey, Azerbaijan and Malaysia have applied for membership and several other countries have expressed interest in joining the grouping, which now accounts for 35 percent of members World economy Based on purchasing power parity, it has overtaken the 30 percent share of the G7 industrialized countries in recent months.
In an abrupt social media post with no introduction, Trump appeared to fire a warning shot against the group’s recent de-dollarization considerations, saying: “The idea that the Brics countries are trying to move away from the dollar while we are doing so.” watch, and.” The clock is OFF.”
“You can find another “sucker!” “There is no chance that the Brics countries will replace the U.S. dollar in international trade, and any country that tries should say goodbye to America,” Trump said, adding that the U.S. “has a commitment from these countries demand that they do not create new Brics currencies, nor do they support any other currency to replace the mighty US dollar, otherwise they will face 100 percent tariffs and should expect to refrain from selling to the wonderful US economy to say goodbye.”
The dollar’s unique status and primacy rests on the perception that America is a stable, reliable foundation of global politics and economics, something that has been called into question in recent years amid rising U.S. debt and deficits, as well as political uncertainty and gridlock becomes. Despite the challenges, the dollar continues to dominate, accounting for more than 58.36% of the world’s official foreign exchange reserves due to its size and liquidity, as well as the perception of the US as a stable society with a mature economy. The euro is currently the second most widely held reserve currency, accounting for about 20% of international foreign exchange reserves.
Most US experts see no immediate threat to the dollar. When the world last switched its reserve currency from the British pound to the American dollar about 80 years ago, the transition was relatively seamless, as the US and Britain were allies, but even given Washington’s contentious relationship with Beijing and Moscow , they say The dollar is safe, although Trump’s sudden ferment suggests he is feeling some unease about running for a second term.