WASHINGTON, United States
United States President, Donald Trump, threatened BRICS member states with 100% tariffs on Thursday to dissuade them from replacing the US dollar as reserve currency.
Trump had made a
similar statement right after winning the November 2024 elections.
"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
US dollar or, they will face 100% Tariffs," he said on his Truth
social media platform.
"There is no chance that
BRICS will replace the US dollar in international trade, or anywhere else,
and any country that tries should say hello to tariffs, and goodbye to
America!" he added.
The BRICS group consists
primarily of Brazil, Russia, India, China and South Africa. In the last few
years, Egypt, United Arab Emirates, Ethiopia, Iran and Indonesia have
also joined the group, bringing the number of members to eleven.
It was formed in 2009 as a
counter to dominance by the US and western allies.
BRICS represents nearly half
of the world's population and is considered as a counterpart to the G7 group of
countries.
The economic bloc has been in
talks about introducing another reserve currency, but the idea took momentum
especially after the West imposed sanctions on Russia due
to its war in Ukraine.
The power of the US dollar in
the world has strengthened recently. It remains the world's primary reserve
currency and there is a huge worldwide reliance on it.
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