US President-elect Donald Trump’s recent threat to impose 100% tariffs on the BRICS bloc of nine nations, which includes China, India, Russia, and Brazil, has sparked speculation about the possibility of these countries challenging the dominance of the US dollar. The threat comes as these countries have been exploring the idea of creating a rival currency to the dollar.
According to China analyst Fraser Howie, the chances of the BRICS countries successfully challenging the US dollar’s dominance are slim. The US dollar has long been the world’s primary reserve currency, with most global transactions being conducted in dollars. The potential consequences of such a move by the BRICS countries are unclear, but it could certainly disrupt the current financial order.
While the idea of challenging the US dollar’s dominance may seem ambitious, many experts believe that diversifying away from dependence on the dollar could be beneficial for global financial stability. However, the path towards creating a rival currency is fraught with challenges, including political, economic, and logistical hurdles.
As tensions between the US and the BRICS countries continue to rise, the future of the global financial system remains uncertain. It remains to be seen whether the BRICS countries will be able to successfully challenge the US dollar’s dominance, or if their efforts will be met with resistance from the US and other global powers.
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Video “Could BRICS countries challenge US dollar dominance? | DW News” was uploaded on 12/03/2024 to Youtube Channel DW News