Priyanka
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According to US president Donald Trump, there might be tariffs on BRICS nations and Spain that could reach 100% (The New York Times articles). This could be a major blow on the trade between India and the US. This statement was made when trump became the 47th US president on Monday, last week.
According to trump comments after elections, “The US is expected to boost sanctions on all BRICS nations. This group of countries aims to ‘de-dollarise’ global trade, and in that case, a lot is at stake for America’s hegemony.”
Earlier on, Trump had cautioned the BRICS countries against any plans to dethrone the US dollar and had been seeking a pledge from the nine-member bloc which includes India , Russia, China and Brazil.
The Process of De-Dollarising Within BRICS and the New Currency of BRICS
Let me remind you that since its formation in 20009, BRICS has been, so far, the only big international bloc that does not include the United States. Currently composed of 10 countries, BRICS includes Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates. As such, Spain is not a member of BRICS.
In past years, a few of its member countries, most notably Russia and China, are looking to get rid of the US Dollar or make their own BRICS currency and use it. So far, India has been not been a part of the movement.
As was the case earlier this month, reports were even surfacing that claimed that the BRICS countries are together preparing to introduce a currency soon that would relish putting pressure on the US dollar. Earlier this month, according to EurAsia Daily, during the Kazan summit, Russian President Putin was handed a symbolic docent known as the 'BRICS Bill'. The Central Bank head Elvira Nabiullina, however, was not fond of the idea.
The creation of new currencies, or efforts towards de-dollarisation, points to the countries’ intention to decrease the heavy dependence on the US dollar as the sole currency of exchange and for reserve purposes. In recent years, some countries have been trading with each other using different systems like national currencies, regional currencies, and even digital currencies known as cryptocurrencies.
Trump Starts Second Term Along With An Array Of Deals
Shortly after taking office, Trump, among other actions, began to sweep his predecessors’ orders first by signing a round of executive orders claiming complete plumage of the federal workforce position followed by a withdrawal from the Paris climate treaty.
The Opinion India Holds Over The BRICS Common Currency And The US Dollar
Previously, Indian External Affairs Minister, S. Jaishankar informed that India “has no interest” on the matter of weakening the US dollar. “There a personal relation between PM Modi and Trump... Where the BRICS remarks was concerened. We've always said that India has never been for de-dollarization, right now there is no proposal to have a BRICS currency. The BRICS do discuss financial tradsactions… US is our largest trade partner, we have no interest in weakening the dollar at all,” he elaborated.
