BRICS member Russia has commented on the recent 100% tariff threats issued by President-elect Donald Trump for cutting ties with the US dollar. Russian President Vladimir Putin spoke about the threats by poking fun at the American economy and its dwindling power. The clout that the US carried a few decades ago is no longer in existence as developing countries have come far ahead in steering their economy to prosperity.
Also Read: BRICS: Global US Dollar Payments Fall Below 50%
While their economy is becoming prosperous, BRICS is focusing on boosting their local currency and not the US dollar. The bloc is determined to use local currencies first and keep the US dollar in the backseat of the global economy. Read here to know how many sectors in the US will be affected if BRICS ditches the dollar for trade.
Also Read: Top Economist Predicts the Future of BRICS Currency
BRICS: The U.S. Dollar’s Global Influence Is Decreasing
BRICS leader and Russian President Putin explained that after Trump’s presidency, American leaders have done a great deal to undermine the US dollar. The sanctions and weaponization of the USD led to emerging economies ganging up against the White House. “The US dollar’s clout is decreasing globally,” said Putin.
Also Read: BRICS: 2 Countries Pay 80% of Trade in Local Currencies, Not US Dollar
He also said that America’s share in the global economy is shrinking while BRICS is rising. “Given that the US share in the global economy is shrinking, the dollar’s influence on global economic processes is also falling. And as this happens, new tools come to the fore,” he said.
“It’s been four years since the [US] President-elect was in the White House. During this time, the economy has undergone many changes, both globally and in America. His successors, his political opponents, have done a great deal to undermine the fundamental role of the dollar as a global reserve currency,” Putin summed it up. It now needs to be seen how BRICS will counter Trump’s threat of reducing dependency on the US dollar.
