Summary

Trump has threatened 100% tariffs on BRICS nations (Brazil, Russia, India, China, South Africa, and others) if they pursue de-dollarization efforts, including creating a new currency to challenge the U.S. dollar’s dominance in global trade.

Trump warned these nations could lose access to the U.S. economy.

BRICS members, frustrated by U.S. financial dominance, have explored alternatives, with Russia advocating for a new payment system to bypass sanctions.

Analysts say the dollar’s global reserve status remains secure in the near term despite these challenges.

  • ℍ𝕂-𝟞𝟝@sopuli.xyz
    link
    fedilink
    English
    arrow-up
    1
    arrow-down
    1
    ·
    2 days ago

    The RMB has problems with how it is regulated to be a viable reserve and trade currency for most countries.

    Currently the big contenders are the EUR, the GBP and the JPY if I recall it correctly.

      • ℍ𝕂-𝟞𝟝@sopuli.xyz
        link
        fedilink
        English
        arrow-up
        1
        ·
        9 hours ago

        https://www.visualcapitalist.com/ranked-the-worlds-top-reserve-currencies-in-2024/

        It’s not just “the dollar”, right now the ranking of reserve currencies is:

        • USD 59%
        • EUR 20%
        • JPY 6%
        • GBP 5%
        • CAD 3%
        • AUD 2%
        • RMB 2%

        I’ll check back again when the RMB reaches like 10%.

        Also, your article is not talking about the RMB as a world reserve, it says BRICS is aiming to create a new currency backed by gold, so essentially a return to the gold standard. One could argue for or against that, maybe it’s better than the dollar if you ask me, but IDK. But adopting that as a national currency would break Chinese manufacturing, as they rely on being able to devalue the RMB to keep doing what they are doing.

        Point is, fuck the USD, but it’s not so simple that we can switch to the RMB and be done with it.