A Brief Analysis - US President Trump’s threat to BRICS members on de-dollarization effort

By Dr. S. Chakraborty 


On Thursday, US President Donald Trump, took Truth social media platform to threaten BRICS member states on their alleged de-dollarisation effort. He clearly stated that, the effort could consequent to 100% tariff on member countries. He said that, it is impossible to replace dollar in international trade. If any member state would try to implement this idea, then they have to say goodbye to American economy.

BRICS is an intergovernmental organization comprised of Brazil, Russia, India, China, South Africa, Egypt, Iran, Saudi Arabia, UAE, Indonesia. Altogether these countries include 25% of global economy and 40% of global population. It is the only biggest intergovernmental platform which does not include the US.

In the last few years, BRICS continuously forwarded the idea of a BRICS currency. In 2024, BRICS summit was held in Russia. The idea was again discussed in the summit. In December 2024, Donald Trump had given same threat to BRICS members.

In December, while answering the question, Minister of External Affairs Dr. S. Jaishankar clearly stated that ‘the BRICS do discuss financial transactions, but certainly, in BRICS, each country doesn't have an identical position on this. But where India's concerned, the United States is our largest trade partner and we have no interest in weakening the dollar at all.’

Dollar is the most influential currency in international trade. It has 90% hold over the international market. But it is not the only convertible currency. Yen of Japan, British Pound are some other influential convertible international currencies. 

Implementing BRICS own currency is also not going to be easy. BRICS members are also taking some other measures like using local currencies. They also discussed and studied practicality of the alternative system like BRICS clear, that is, implementing a cross-border settlement and depository system. The 16th BRICS summit under the Chairmanship of Russia prepared a report, 'BRICS Chairmanship Research on the Improvement of the International Monetary and Financial System.’ The report stated that, BRICS do not seek to replace the US dollar as medium of exchange because of its important share in the global economy. BRICS only aims to offer a viable alternative that will aid the market in its perpetual mission for efficiency.'

For detail

Transcript of remarks byExternal Affairs Minister, Dr. S. Jaishankar at the Doha Forum 2024 OpeningPanel on ‘Conflict Resolution in a New Era’

Brics Countries Want to Trade in Own Currencies Can it work?

BRICS summit: Key takeaways from the Kazan declaration

India Has Contributed $2 Billion to BRICS Bank: Finance Ministry

Comments

Post a Comment

Popular posts from this blog

PM Modi’s Tentative Programme for His Visit to France

  By Dr. S. Chakraborty At the invitation of President Macron, PM Modi will visit France in the next week. He will be there from 10 th to 12 th February, 2025. Foreign Secretary Shri Vikram Mishri shared a tentative programme schedule of PM Modi. PM Modi will arrive Paris in the evening of the 10 th February. At that evening, he will attend a dinner that is being hosted by President Macron at the Élysée Palace in honor of visiting Heads of Government and Heads of State. The dinner is also likely to be attended by a large number of CEOs from the tech domain and a number of other distinguished invitees to the summit. On the 11th of February, the Prime Minister will co-chair the AI Action Summit, along with President Macron. Considering the profound impact of Artificial Intelligence in all sectors of economy, polity, society and governance, this summit is highly significance. This is the third such high level summit that is being held in the very recent past. The first of ...
Read more

Parliament discussion on Status of investigation on the 1985 Kanishka Bombing

  By Dr. S. Chakraborty On 6 th February, 2025, Shri Kartikeya Sharma, member of Rajya Sabha, expressed his concern regarding the investigation and prosecution of those responsible for the 1985 Kanishka bombing. The attack claimed 329 lives, among them majority were India-origin, and 24 Indian nationals. He asked the current status of India's engagement with the Canadian Government and other partners, regarding the investigation and prosecution of those responsible for the Kanishka bombing and the details thereof; he also asked the details of the steps being taken by the Ministry to ensure that all perpetrators of the bombing are extradited to India; and whether there is any mechanism in place to ensure that the Canadian Government is held accountable for any perceived lapses in their investigation or prosecution of the perpetrators, if so, the details thereof? Answering the question, the Minister of State in the Ministry of External Affairs Shri Kirti Vardhan Singh clearly ...
Read more

China Approved Plans to Construct Dam on Transboundary River Brahmaputra

  On December 25, 2024 China approved construction of world’s largest dam on a transboundary river Yarlung-Tsangpo in the Tibet Autonomous Region of China, called Brahmaputra river in India.  Yarlung-Tsangpo is the longest river of Tibet. The approved dam will be three times larger than the Three Gorges dam. China claimed that the project has gone through rigorous scientific verification and will not have any negative impact on downstream countries like, India and Bangladesh. India already reacted by saying that it will protect its own interest. India’s concern could also be measured from the discussion of the Indian officials with the visiting US National Security Advisor Mr. Jake Sullivan, where the issue found place. Mr. Sullivan came to India to review the trajectory of India-US global strategic partnership under the Biden administration. The dam will be constructed at a huge gorge in the Himalayan reaches where the Brahmaputra makes a U-turn to flow through Arunacha...
Read more