Washington: President-elect Donald Trump has issued a stern warning to BRICS nations, cautioning them against replacing the US dollar as the dominant currency in international trade. BRICS, a nine-member group including India, China, Russia, Brazil, and South Africa, has been exploring the feasibility of creating a common currency to reduce reliance on the US dollar. This initiative has gained traction among some member nations, particularly Russia and China, though India has distanced itself from the move.
In a statement on Truth Social, Trump declared, “The era of BRICS countries attempting to move away from the dollar while we stand idle is over.” He warned of severe economic repercussions, threatening a 100% tariff on nations that support alternative currency systems, effectively barring their access to the lucrative US market.
At the 2023 BRICS summit in South Africa, Brazilian President Luiz Inácio Lula da Silva proposed a study into the feasibility of a common BRICS currency. However, India has expressed reservations about de-dollarisation. India’s External Affairs Minister, S. Jaishankar, clarified during a Carnegie Endowment event that India has no malicious intent against the dollar and seeks practical trade solutions for partners facing dollar shortages.
While India acknowledges challenges stemming from US policies restricting dollar-based trade, its stance emphasizes a balanced approach, prioritizing economic needs without targeting the US dollar. The debate over de-dollarisation underscores shifting dynamics in global trade and currency reliance.
