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The geopolitical landscape is witnessing a significant shift as the BRICS+ nations, undeterred by threats from former US President Donald Trump, are actively pursuing alternatives to the US dollar for global trade. This move, dubbed "de-dollarisation," represents a direct challenge to the dollar's long-standing dominance in the international financial system. The BRICS+ grouping, comprised of Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, the United Arab Emirates (UAE), and Indonesia, with Saudi Arabia considering membership, is demonstrating a united front in the face of potential economic repercussions from the United States. Trump, known for his protectionist trade policies and assertive stance on international relations, had repeatedly threatened to impose substantial tariffs, ranging from 100% to 150%, on BRICS+ nations if they attempted to undermine the dollar's position. These threats, initially issued in December and reiterated in January following his (hypothetical) inauguration, were intended to dissuade the BRICS+ nations from pursuing their de-dollarisation agenda. However, these nations have evidently calculated that the benefits of reducing their reliance on the dollar outweigh the potential costs of incurring Trump's wrath. Brazil, which holds the presidency of the BRICS+ grouping this year, has been particularly vocal in its commitment to de-dollarisation. President Lula da Silva, in a direct response to Trump's threats, unequivocally stated that the BRICS+ nations are determined to end the US dollar's dominance, regardless of the potential consequences. He emphasized that Trump's tariff threats would not deter the BRICS+ nations from seeking alternative platforms for payments between member countries. This resolute stance highlights the growing confidence and determination of the BRICS+ nations to reshape the global financial architecture. The pursuit of de-dollarisation is driven by a number of factors, including a desire to reduce dependence on the US economy and its monetary policy, to mitigate the impact of US sanctions, and to promote a more multipolar world order. Many countries, particularly those that have been targeted by US sanctions, view the dollar's dominance as a tool of American foreign policy that can be used to exert economic pressure. By reducing their reliance on the dollar, these countries aim to gain greater autonomy and to protect themselves from potential economic coercion. The BRICS+ nations are exploring various strategies to achieve their de-dollarisation goals. One approach is to increase the use of national currencies in trade among member countries. This would reduce the need to convert transactions into dollars, thereby diminishing the dollar's role in international commerce. Another strategy is to develop alternative payment systems that bypass the existing dollar-based infrastructure. This could involve creating new platforms for cross-border payments that are independent of the US financial system. The development of a common BRICS+ currency has also been discussed, although this remains a long-term goal. While the creation of a single currency would be a significant step towards de-dollarisation, it would also require a high degree of economic and political integration among the member countries. The de-dollarisation efforts of the BRICS+ nations are not without challenges. The US dollar remains the world's reserve currency, and it is deeply embedded in the global financial system. Overcoming this dominance will require sustained effort and coordination among the BRICS+ nations. Moreover, the US government is likely to resist any attempt to undermine the dollar's position, as it views the dollar's status as a key source of American power and influence. Despite these challenges, the de-dollarisation movement is gaining momentum, and it has the potential to reshape the global financial landscape. The rise of the BRICS+ nations as economic powerhouses, coupled with their growing dissatisfaction with the dollar-centric system, is creating a fertile ground for alternatives to emerge. Whether the BRICS+ nations will succeed in their de-dollarisation efforts remains to be seen, but their challenge to the dollar's dominance is a sign of the changing times and the growing multipolarity of the world.
Donald Trump's reaction to the BRICS+ nations' de-dollarisation efforts has been characteristically assertive and dismissive. He has boasted that his tariff threats have effectively "broken" the BRICS nations and that they are now "afraid to even talk about" de-dollarisation. Trump has even gone so far as to declare that "BRICS is now dead," attributing its demise to his policies. These claims, however, appear to be premature and disconnected from reality. The BRICS+ nations are continuing to pursue their de-dollarisation agenda, and they have shown no signs of backing down in the face of Trump's threats. President Lula da Silva's strong statement in support of de-dollarisation is a clear indication that the BRICS+ nations are not intimidated by Trump's rhetoric. Furthermore, the fact that Saudi Arabia is still considering joining the BRICS+ grouping suggests that the organization is far from "dead." Trump's comments reflect a broader tendency to view international relations through a zero-sum lens, in which any challenge to American power is seen as a threat. He appears to believe that the US can maintain its global dominance by unilaterally imposing its will on other countries. However, this approach is likely to be counterproductive in the long run, as it alienates potential allies and encourages other countries to seek alternatives to the US-led order. The BRICS+ nations' de-dollarisation efforts are not simply a reaction to Trump's policies. They are also driven by a deeper desire to create a more equitable and multipolar world order. Many countries believe that the current global financial system, which is heavily reliant on the US dollar, is unfair and unsustainable. They argue that the US has used its control over the dollar to its own advantage, often at the expense of other countries. By promoting de-dollarisation, the BRICS+ nations are seeking to create a more level playing field in the global economy. This is not to say that the BRICS+ nations are seeking to completely replace the US dollar. The dollar is likely to remain an important currency in international trade and finance for the foreseeable future. However, the BRICS+ nations are seeking to reduce their reliance on the dollar and to create a more diversified global financial system. This would make the global economy less vulnerable to shocks emanating from the United States and would give other countries a greater voice in the management of the global economy. The de-dollarisation efforts of the BRICS+ nations are a complex and multifaceted phenomenon. They are driven by a combination of economic, political, and strategic factors. While the challenges are significant, the potential rewards are also substantial. If the BRICS+ nations are successful in their efforts, they could reshape the global financial landscape and create a more multipolar world order.
In conclusion, the BRICS+ nations' pursuit of de-dollarisation represents a significant challenge to the US dollar's dominance in the global financial system. Despite threats from Donald Trump, the BRICS+ nations are determined to seek alternatives to the dollar for trade and investment. This movement is driven by a desire to reduce dependence on the US economy, mitigate the impact of US sanctions, and promote a more multipolar world order. The BRICS+ nations are exploring various strategies to achieve their de-dollarisation goals, including increasing the use of national currencies in trade, developing alternative payment systems, and potentially creating a common BRICS+ currency. While the challenges are significant, the potential rewards are also substantial. The de-dollarisation efforts of the BRICS+ nations are a sign of the changing times and the growing multipolarity of the world. The response of the United States to this challenge will be crucial in shaping the future of the global financial system. A confrontational approach, such as that advocated by Donald Trump, is likely to be counterproductive and may only accelerate the de-dollarisation process. A more nuanced and cooperative approach, which recognizes the legitimate concerns of the BRICS+ nations and seeks to find common ground, may be more effective in preserving the US dollar's position in the global economy. The future of the global financial system is uncertain. However, one thing is clear: the BRICS+ nations are playing an increasingly important role in shaping that future. Their de-dollarisation efforts are a testament to their growing economic and political power and their determination to create a more equitable and multipolar world order. The world is changing, and the global financial system is changing with it. The US must adapt to these changes if it wants to maintain its leadership position in the world economy.
Source: As Trump Boasts "BRICS Is Dead", New De-Dollarisation Call Comes As A Jolt