Overview

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U.S. President-elect Donald Trump has warned the BRICS countries that if they attempt to replace the “mighty U.S. dollar” they would face “100 percent tariffs and should BRICS nations, especially Iran and Russia, are actively moving away from using the US dollar in their trade dealings. The de-dollarization trend is driven by economic The BRICS allianceBrazil, Russia, India, China, and South Africa, alongside new members Egypt, Ethiopia, Iran, the UAE, and Indonesiais moving toward BRICS is challenging the dominance of the US Dollar to stabilize the global economy. Nigeria, interested in joining BRICS, sees it as an opportunity to balance Western The BRICS nations are trying different tactics to reduce dollar dependency. One idea floating around is creating a shared currency or payment system that doesn't rely on SWIFTa BRICS leaders have said they want to use their national currencies more instead of the dollar, which strengthened sharply last year as the Federal Reserve raised Witness the Brics development bank’s drive to lend in local currencies. Its goal is to offer an alternative to the US-based financial order. Discontent is understandable.

BRICS: The Mighty Dollar Faces a Do or Die Situation?

Is the reign of the mighty U.S. dollar coming to an end? The BRICS alliance – Brazil, Russia, India, China, and South Africa, alongside new members Egypt, Ethiopia, Iran, the UAE, and Indonesia – is increasingly challenging the dominance of the US Dollar to stabilize the global economy. Discontent is understandable, and the de-dollarization trend is gaining momentum.

The BRICS Push for De-Dollarization

BRICS nations, especially Iran and Russia, are actively moving away from using the US dollar in their trade dealings. This shift is driven by economic factors and a desire for greater financial autonomy. Nigeria, interested in joining BRICS, sees it as an opportunity to balance Western influence.

Strategies to Reduce Dollar Dependency

The BRICS nations are trying different tactics to reduce dollar dependency. One idea floating around is creating a shared currency or payment system that doesn't rely on SWIFT. BRICS leaders have said they want to use their national currencies more instead of the dollar, which strengthened sharply last year as the Federal Reserve raised interest rates.

The Threat of Retaliation?

U.S. President-elect Donald Trump has warned the BRICS countries that if they attempt to replace the “mighty U.S. dollar” they would face “100 percent tariffs.” This highlights the potential geopolitical tensions surrounding the BRICS challenge to the dollar's global supremacy.

BRICS Development Bank: An Alternative Financial Order

Witness the BRICS development bank’s drive to lend in local currencies. Its goal is to offer an alternative to the US-based financial order. This is a significant step towards reducing reliance on the dollar and fostering financial independence within the BRICS nations.

What's Next for the Dollar?

The future of the dollar remains uncertain. The actions of the BRICS nations, combined with potential retaliatory measures and the development of alternative financial institutions, will undoubtedly shape the global financial landscape in the years to come. Will the dollar maintain its dominance, or will the BRICS nations succeed in creating a more multi-polar financial world?

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