BRICS Nations Clarify No Intention to Undermine US Dollar: Report

BRICS and the Dollar: A Diplomatic Dance

A Twist in the Tale

Three BRICS nations have lately joined hands to send a message to President-elect Donald Trump, addressing reports of their alleged de-dollarization efforts. Last year, whispers surfaced about BRICS creating a common currency backed by gold and perhaps other assets, aiming to wean off the USD. However, it appears there is now a twist in this narrative.

Diplomacy at the Forefront

Russian diplomat Sergey Ryabkov recently assured that BRICS would like to sit down with Trump for a tête-à-tête. The coalition’s leaders are eager to clarify that there is no intention to undermine the dollar’s dominance as the world’s reserve currency. Ryabkov remarked, “We are ready to explain to Trump, or anyone else, that we are not encroaching on the dollar. Our actions stem from the flawed policies Washington has undertaken, not excluding Trump’s first administration.” More on this narrative is reported by TASS.

India’s Cautious Approach

Meanwhile, India, a proud member of BRICS, is echoing similar sentiments. S Jaishankar, India’s External Affairs Minister, emphasised that it would not be in India’s interest to join any move that seeks to weaken the dollar, especially as the US happens to be its largest trading ally. Jaishankar stated to NDTV, “India has never been for de-dollarization. Currently, there is no proposal for a BRICS currency. Our discussions focus on financial transactions among member countries.”

Misinterpretations and Clarifications

In an interesting turn of events, South Africa has also cleared the air regarding potential BRICS currency developments. They stress that recent misreporting has spun a false narrative about BRICS intending to topple the US dollar with a new currency. Instead, discussions within BRICS primarily address trading amongst member countries using national currencies. South Africa’s standpoint is detailed further here.

Trump Issues a Stern Warning

Not one to stay silent, Trump had earlier delivered a stern warning to BRICS. He declared that the US would not remain passive if any group of countries attempts to sideline the dollar. In his words, “The idea that the BRICS Countries are moving away from the dollar while we stand by is OVER. They will face 100% tariffs without a firm commitment that they won’t create a new BRICS currency or back another currency to replace our mighty US dollar.” This message was as emphatic as it was clear. Countries exploring alternatives might find themselves bidding adieu to the lucrative American market.

What’s Next?

Amid rising debates and diplomatic dialogues, it remains crucial to monitor these developments closely. As nations forge alliances and navigate economic policies, the future of global currency dynamics lies in a balance of interests and intentions.

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