Trump warns BRICS countries not to try to get rid of the dollar. Is it that easy to de-dollarize?

Donald Trump, who is about to take office in the White House, warns the BRICS countries that he will ask them to commit not to create new currencies to replace the US dollar, and threatens to impose 100% tariffs.

Trump warns gold-brick countries "not to try to get rid of the US dollar"

Over the weekend, Trump posted on social media:

The idea of BRICS countries trying to get rid of the USD and hoping the US will stand by has come to an end. We will require these countries to commit to not creating new BRICS currencies or supporting any other currency to replace the strong USD, otherwise they will face 100% tariffs and say goodbye to the opportunity to sell to the US economy. BRICS countries cannot replace the USD in international trade, and any country that tries to replace the USD should say goodbye to the US.

According to previous reports, the BRICS group composed of Brazil, Russia, India, China and South Africa is working to build a blockchain-based digital payment system and continue to reduce reliance on Settlement in US dollars. The BRICS group has expanded to include Iran, the United Arab Emirates, Ethiopia, and Egypt this year.

And Trump and his economic advisers have been discussing how to punish allies and opponents who seek bilateral trade in currencies other than the US dollar, including considering export controls, charges of currency manipulation, and trade taxes. Trump has long emphasized that he wants the dollar to continue as the world's reserve currency and has said he will not allow countries to abandon the dollar, as this would hurt the United States.

Is it so easy to de-dollarize?

Russian President Vladimir Putin is an advocate of weakening the international status of the US dollar, mainly because Russia has been banned from using SWIFT for international remittances and other economic sanctions due to the Ukraine-Russia war.

China's recent rise has sparked continuous discussions about the possibility of the coin replacing the US dollar, but despite the progress made by the coin in international trade in recent years, it is often at the expense of coins other than the US dollar. The finance and economics M-square podcast also has many data to prove that it may not be as easy as imagined to replace the US dollar!

Including global forex volume, the percentage of currency usage in SWIFT international payments, and the US dollar reserves of various countries all show that the usage of the US dollar still leads globally. From a historical perspective, even the rise of emerging countries will need to surpass the United States economically for decades before they have the opportunity to gradually replace the US dollar as the more widely circulated currency.

However, Trump's threat this time can be considered as a precautionary measure, just like the United States' recent efforts to prevent the development of Chinese technology and the de-dollarization of BRICS countries, it is also a measure to prevent other countries from surpassing the speed and opportunities of the United States, which also confirms Trump's slogan "Make America Great Again"!

This article Trump warns BRICS countries not to try to get rid of the dollar, is it easy to de-dollarize? First appeared on Chain News ABMedia.