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BRICS New Currency Plans Under Fire as Trump Threatens Tariffs

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US President Donald Trump has made it clear that the United States will not stand idly by as BRICS nations—including South Africa, China, and India—explore financial alternatives to the US dollar. In his inaugural address, Trump vowed to impose a 100% tariff on trade with BRICS nations should they move forward with creating a shared currency.

“If the BRICS nations want to do that, that’s okay, but we’re going to put at least a 100% tariff on the business they do with the United States,” Trump said, reaffirming his stance against any attempts to reduce the dollar’s dominance in global trade.

BRICS Leaders Deny Imminent New Currency

Despite Trump’s aggressive rhetoric, key players within the BRICS alliance have downplayed the notion of an imminent new currency.

South Africa’s Finance Minister Enoch Godongwana stated in September that the bloc has not decided on creating a common digital currency, despite some calls for such an initiative. Similarly, Reserve Bank of India Governor Shaktikanta Das confirmed that discussions on a shared currency have not led to any definitive plans.

“BRICS currency was an idea raised by one of the members and was discussed, but no decision has been made,” Das said.

Officials from South Africa and India have instead emphasized the bloc’s current focus on boosting trade through national currencies. This approach aims to mitigate foreign exchange volatility and promote economic stability.

Russia Pushes for Digital Innovation

While most BRICS nations adopt a cautious approach, Russia is championing the concept of BRICS Pay—a digital payment system designed to facilitate trade within the bloc.

Tested during the BRICS Business Forum, BRICS Pay demonstrates the alliance’s commitment to exploring alternative trade pathways and reducing dependency on the US dollar.

However, South Africa has expressed caution regarding digital currencies. The National Treasury has stated that the country remains in the early stages of researching digital assets and has not yet committed to BRICS Pay.

South Africa’s Focus on Financial Stability

South Africa’s Department of International Relations and Cooperation clarified that the country is not actively pursuing “de-dollarisation.” Instead, the focus lies on strengthening correspondent banking networks and developing infrastructure for trade settlements in national currencies.

This careful approach highlights the complexities of digital currency adoption and the potential risks associated with reshaping financial systems.

High-Stakes Financial Diplomacy

President Trump’s tariff threats have brought the debate over the US dollar’s dominance into sharper focus. As BRICS nations navigate the delicate balance between financial independence and global trade, the future of a shared BRICS currency remains uncertain.

While the bloc explores avenues for greater resilience and autonomy, it must also contend with the geopolitical challenges of challenging the status quo.

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