The Kremlin has dismissed reports suggesting that BRICS nations are planning to establish a common currency. The statement follows U.S. President Donald Trump’s threats to impose 100% tariffs on BRICS nations if they attempt to challenge the dominance of the U.S. dollar.
JUST IN: Kremlin says BRICS is not discussing the creation of a common currency after President Trump threatened 100% tariffs on BRICS nations. pic.twitter.com/8qmyiKptCB
— BRICS News (@BRICSinfo) January 31, 2025
Trump’s Warning to BRICS
On Thursday, Trump reiterated his stance against BRICS moving away from the U.S. dollar. Posting on Truth Social, he declared, “The idea that the BRICS Countries are trying to move away from the Dollar, while we stand by and watch, is OVER.” He further warned that the bloc must commit to neither creating a BRICS currency nor backing any alternative reserve currency or face steep economic repercussions.
The former president’s comments reflect ongoing concerns in Washington regarding de-dollarization efforts. With the U.S. economy facing inflationary pressures and global geopolitical shifts, Trump appears determined to maintain the dollar’s dominance on the world stage.
Kremlin Denies Currency Plans
Despite previous discussions within BRICS about a common currency, Kremlin spokesperson Dmitry Peskov clarified that the bloc is not working towards such an initiative. According to Peskov, BRICS is focused on establishing joint investment platforms rather than an independent monetary system. He suggested that U.S. analysts should update Trump on BRICS’ actual objectives.
For years, BRICS has explored ways to reduce reliance on the dollar, with talks intensifying amid growing economic tensions. However, the bloc recently asserted that it has no intention of completely abandoning the USD, instead seeking alternatives for nations wary of U.S. monetary policies.
Global Implications
As more countries opt for local currency trade agreements, the greenback faces increasing pressure. Ironically, Trump’s aggressive tariff policies could accelerate this shift, further alienating the U.S. from key international markets.
Also Read: Russia Responds to Trump’s Tariff Threat: BRICS Denies Plans for Dollar Rival Currency
While the debate over BRICS’ currency ambitions continues, the real question remains: Will Trump’s hardline approach strengthen the dollar, or will it push global economies further toward alternative financial systems?
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.