The Kremlin stated that any effort by the United States to force countries to use the dollar would fail. This comes after U.S. President-elect Donald Trump’s threat that he would impose tariffs on BRICS countries if they developed their currency.
Trump demanded on Saturday that BRICS member countries pledge not to create a new currency or support one that could replace the U.S. dollar, Trump’s threat with 100% tariffs if they did not comply.
The BRICS group initially consisted of Brazil, Russia, India, and China, but it has since grown to include other countries. Although they do not share a common currency, discussions about this have gained traction after Western sanctions were imposed on Russia due to the conflict in Ukraine.
When asked about Trump’s remarks, Kremlin spokesperson Dmitry Peskov noted that the dollar is losing its status. As a reserve currency for many countries, a trend he believes is accelerating.
“An increasing number of countries are choosing to use their own money for trade and international business,” Peskov said to reporters.
He believes that if the U.S. tries to force countries to use the dollar by using “economic pressure.” It will actually make more countries want to use their own currencies instead.
“If the U.S. uses pressure, or what they call economic pressure, to make countries use the dollar. It will just make the trend of using national currencies stronger,” Peskov explained.
“Many countries are starting to find the dollar less attractive as a reserve currency.”
The dollar’s strong position in the global economy has actually become stronger recently. Due to the healthy U.S. economy, stricter monetary policies, and increased political tensions. However, as the world economy becomes more divided, countries like Brazil, Russia, India, China, and South Africa are trying to move away from using the dollar and instead use other currencies.
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