The U.S. President-elect Donald Trump strongly cautioned the BRICS alliance urging its member states to stop any efforts to create a new currency that might undermine the U.S dollar’s dominance in global trade.
Trump warned that such actions would lead to serious consequences, including imposing 100% tariffs on goods from BRICS nations and limiting their access to the U.S market.
“The notion that BRICS nations are plotting to sideline the U.S dollar while we do nothing is ABSURD. We demand these countries pledge not to pursue a BRICS currency or support any alternative to the mighty U.S dollar.
If they refuse, they should prepare for 100% tariffs and the loss of access to our exceptional U.S economy,” Trump stated.
However, the alliance, which expanded to ten nations in 2024, is not looking to use a single currency to replace the dollar but intends to increase the use of national currencies in trade.
BRICS | Ethiopia 🇪🇹 and Egypt 🇪🇬 Among 6 New Nations Joining BRICS Starting January 2024
Broadening the scope of the coalition is a component of BRICS strategy to establish influence and restructure worldwide governance into a ‘multipolar’ global arrangement that prioritizes the… pic.twitter.com/JpDt44pJjt
— BitKE (@BitcoinKE) August 25, 2023
In their latest 2024 summit in the Russian city of Kazan, the members issued a joint declaration advocating for the establishment of an independent payment system based on their national currencies.
“The dollar is being used as a weapon. We really see that this is so. I think that this is a big mistake by those who do this,” said host President, Vladimir Putin, at the summit.
Consequently, the alliance introduced the ‘BRICS Pay’ system which is meant to facilitate trade using local currencies.
According to South Africa Finance Minister, Enoch Gondogwana, the system is aimed at boosting trade among member countries, especially for nations like Russia, which have faced economic difficulties due to unilateral western sanctions and exclusion from the SWIFT system.
Besides Russia, more than 60 percent of all low-income countries are under some form of financial penalty from the U.S, which in 2024, as reported by BitKE, imposes three times as many sanctions as any other country or international body.
🇺🇸GLOBAL | Over 60% of Low-Income Countries, Nearly Half of the Global Population, Dealing With Sanctions, Financial Penalties from the U.S.
Today, the United States imposes 3x as many sanctions as any other country or international body, targeting a third of all nations with… pic.twitter.com/CgNGZvvUNK
— BitKE (@BitcoinKE) July 31, 2024
The new BRICS Pay system is designed to link national payment methods with commercial systems in member countries and designed to enable trade in multiple currencies across the 100+ country bloc.
It is also based on blockchain and incorporates digital currencies and stablecoins, including a native cryptocurrency.
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