Family photo during the BRICS summit in Kazan, Russia, on Oct 24, 2024. Photo: AFP/file photo.
Caracas (OrinocoTribune.com)—If the BRICS countries decide to replace the US currency, “they should say goodbye to selling into the wonderful US economy,” US president-elect Donald Trump wrote on Saturday, November 30, while threatening to impose 100% tariffs on BRICS countries if they try to end the international dominance of the US dollar.
“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 US Dollar, or they will face 100% tariffs,” the Republican politician, to be inaugurated as US president on January 25, wrote on social media.
BRICS stands for Brazil, Russia, India, China and South Africa. The group was launched in 2006, and Brazil, Russia, India and China convened for the first BRIC summit in 2009. South Africa joined a year later.
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…
— Donald J. Trump (@realDonaldTrump) November 30, 2024
In 2023, BRICS extended invitations to include Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates, after these countries applied for membership. Saudi Arabia has yet to formally join, but the others have already aceded to membership.
“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,” Trump added as a threat to the group, that accepted 13 new “partner nations” at its last summit in Kazan, Russia, in October 2024.
Speaking at this summit, Russian President Vladimir Putin said: “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.” Putin added that nearly 95% of trade between Russia and China is now conducted in rubles and yuan.
The Kazan summit considered payments systems excluding the dollar and establishing financial markets outside US control. It endorsed “the use of local currencies in financial transactions between BRICS countries and their trading partners.” Its final declaration endorsed “the initiative of the Russian side to establish a grain (commodities) trading platform within BRICS (the BRICS Grain Exchange).” Currently, most Russian and Iranian oil is traded outside the dollar, notably with China and India, so as to evade US sanctions.
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The summit declaration also instructed the BRICS interbank cooperation mechanism (ICM) to “study the feasibility of establishment of an independent cross-border settlement and depositary infrastructure: BRICS Clear.” This could potentially rival SWIFT.
The 13 new BRICS associate members are: Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Türkiye, Uganda, Uzbekistan, and Vietnam. Venezuela was expected to feature on this list, however, due to Brazil’s unexpected rejection, the decision was not approved, as the organization’s decision making process is based on consensus.
For many analysts, Trump’s statements reflects the declining nature of the US hegemony and the rising power represented by BRICS in the international scene.
Special for Orinoco Tribune by staff
OT/JRE/SA
