US treasury secretary dismisses BRICS replacement of dollar

(MENAFN) US Treasury Secretary Scott Bessent has dismissed the possibility that the BRICS nations can replace the US dollar as the global reserve currency, despite efforts by countries like Russia, China, and India to reduce their reliance on the dollar in trade. Bessent, with over three decades of experience in currency markets, emphasized that no other currency could challenge the dominance of the greenback.

The BRICS group, which includes Brazil, Russia, India, China, South Africa, and several other nations, has increasingly turned to mutual trade settlements in their national currencies, particularly after Russia’s euro and dollar reserves were frozen following the 2022 Ukraine conflict. Despite this, Bessent believes that no alternative currency is currently viable.

BRICS members have discussed economic cooperation, with some expressing interest in a shared trading currency, but Kremlin spokesperson Dmitry Peskov clarified that there are no plans for a common BRICS currency. Brazilian President Luiz Inácio Lula da Silva had previously voiced support for a "trading currency" within the group, but other BRICS leaders, including those from Russia and China, have denied such discussions.

US President Donald Trump also reiterated threats against countries attempting to replace the dollar, warning that they would face heavy tariffs. Despite BRICS' efforts to reduce dollar reliance, the group has stressed that they do not seek to undermine the US dollar’s position but criticize its politicization.

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