Donald Trump to BRICS: Who dare you trying to move away from the Dollar
US President-elect Trump has stated that countries within the BRICS coalition will encounter a full imposition of tariffs amounting to 100% should they attempt to establish a new currency intended to replace “the mighty US dollar.”
“They will face 100% tariffs, and should expect to say goodbye to selling into the wonderful US economy.”
The President-elect wrote on X, “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 U.S. Economy. They can go find another “sucker!” There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
In a noteworthy advancement for the economic alliance, BRICS Pay has been officially inaugurated. At the BRICS Business Forum convened in October in Moscow, participants were issued new cards for the highly anticipated payment system. These cards signify the inaugural launch of this landmark initiative.
The BRICS Pay system was a joint venture between the BRICS states to receive and make payments in their own local currencies. The venture was launched in 2018 by the BRICS Business Council.
BRICS mBridge will serve as a gateway for settlements in central bank digital currencies (CBDs). Effectively, it will act as an alternative to today’s most commonly used payment platform, called Society for Worldwide Interbank Financial Telecommunication (SWIFT) system.
BRICS Pay represents an alternative payment system utilizing the national currencies of BRICS member states. This innovative framework will incorporate a new messaging system alongside a network of national commercial banks interconnected through the central banks of BRICS, thereby eliminating the necessity for currency exchange through the U.S. dollar.
BRICS presently comprises nine official members: Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates. Additionally, 35 emerging economies participated in the BRICS 2024 summit and have conveyed their willingness to eliminate the use of the US dollar for trade transactions.