On the heels of the 16th BRICS summit in October 2024, Russian Foreign Ministry spokesperson Maria Zakharova called the US dollar a “problematic currency.” She said that the de-dollarization agenda is not a goal for some nations, but a reality. While the initiative took wings last year, it is now an ash-covered cinder that has taken a temporary refuge.
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The temporary refuge to pause de-dollarization comes after US President Donald Trump threatened 100% tariffs on goods from BRICS countries. This led to many countries, especially India and Brazil dropping the de-dollarization ideals and embracing the US dollar. The backtracking comes from threats and not out of their own will.
The main issue with developing countries was that the US was weaponizing the dollar for their benefit. Even former US Treasury Secretary Janet Yellen admitted that sanctions have led to de-dollarization. From pressing sanctions to ruining economies, the White House was always looked at with disdain. This led to the rise of de-dollarization and BRICS crafted an agenda to topple the US dollar from its dominant status.
Also Read: India Officially Dismisses BRICS Currency, Praises the US Dollar
BRICS vs the US Dollar
If angering them through sanctions was not enough, now enters tariffs. The current situation is nothing but a ticking time bomb that could explode if the US continues using this method. The anger against the US and the dollar will only increase leading to developing countries finding newer alternatives to end reliance on the greenback.
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The sanctions led to de-dollarization and slowly the tariffs could lead to something else. There is always some country trying to find new methods to steamroll the USD and replace it with local currencies. If not BRICS, another alliance could come forward with an agenda to teach the US and the dollar a lesson. It might not happen now, but could take its course as the market and economy is dynamic.
