Trump's BRICS Threat Adds Fuel To De-Dollarization Drive

12/12/2024 2:05:45 AM

(MENAFN- Asia Times) Donald Trump's return to power is bringing his characteristic bluntness back to the global economic stage.

One of his first targets is the BRICS, an economic bloc founded by Brazil, Russia, India, China and South Africa and with news members including Saudi Arabia and the UAE that is mulling the creation of a currency to rival the US dollar's dominance.

Trump's threats of 200% tariffs and a full ban from US markets for any BRICS nation attempting such a de-dollarization move have reignited debates about the future of the dollar's supremacy.

At first glance, Trump's hardline dollar defense would appear to bolster its position as the global reserve currency, a role it has held since World War II.

But a closer look suggests that these tactics could backfire, driving countries like China to accelerate efforts to reduce their reliance on and holdings of the dollar.

Already wary of Washington's willingness to use the dollar as a geopolitical weapon, China has spent the past decade laying the groundwork for an alternative financial future.

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