BRICS non-dollar transactions: Donald Trump warns China, India, Russia

www.mangaloretoday.com

New  Delhi, December 1, 2024: The world could see a second wave of tariff war as Donald Trump takes office this January. The US President-elect has threatened a 100% tariff on the BRICS countries, including India, if they undercut the US dollar or replace it with another currency for international transactions. His remarks follow a BRICS meeting in October that discussed boosting non-dollar transactions. The BRICS grouping comprises Brazil, Russia, India, China, South Africa and other countries.

In a scathing online post, Trump said this morning he is not going stand and watch the BRICS move away from the dollar.

"The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful US Economy," said the Republican leader who won a decisive victory in the presidential elections held last month.

The President-elect suggested that the BRICS countries can go find another "sucker", but the group won’t be able to replace the dollar in international trade with another currency. "They can go find another "sucker!" There is no chance that the BRICS will replace the US Dollar in International Trade, and any Country that tries should wave goodbye to America," said Trump.

The BRICS countries - which now include Egypt, Iran, and UAE as well - discussed boosting non-dollar transactions and strengthening local currencies at a summit held in Russia’s Kazan in October.

A joint declaration for the "strengthening of correspondent banking networks within BRICS and enabling settlements in local currencies in line with BRICS Cross-Border Payments Initiative" was secured at the summit in October.

However, Russia’s President Vladimir Putin indicated at the summit’s end that no alternatives have been made so far to compete with the Belgium-based SWIFT financial messaging system.

India, too, has said it’s against de-dollarisation. In October, Foreign Minister S Jaishankar said that’s neither a part of India’s economic policy nor the country’s political or strategic policies. But in cases where trade partners do not take dollars or when issues emerge due to trade policies, workarounds are looked at, he had said.