Trump’s threat

Donald Trump has threatened the BRICS countries with import tariffs if they create their own currency to replace the US Dollar as the world's reserve currency. Trump demands a commitment from these countries that they will never create a new currency or else face heavy tariffs restrictions on selling to the US economy. Ever since the US blocked Russia and Iran from the Society of Worldwide Interbank Financial System (SWIFT), a key conduit for international financial transactions, countries around the world have been thinking about reducing their dependence on the US dollar and the US-led global financial system in general. By blocking some countries from accessing SWIFT, the US has weaponised global financial infrastructure, forcing other nations to find alternative mechanisms to continue trade. Trump's threat is unlikely to deter BRICS nations from pursuing alternatives to the US Dollar.

Shafi Ahmed Khowaja

Hyderabad