Chinese Foreign Ministry Spokesperson Lin Jian said on Tuesday that China expects members of the BRICS economic bloc to push back against President-elect Donald Trump's tariff threats.
“As an important cooperation platform for emerging market and developing countries, BRICS advocates openness, inclusiveness and win-win cooperation rather than conflict between blocs, and is not targeting any third countries. The aim is to achieve common development and prosperity,” Lin said. said at a press conference on Tuesday.
“China stands ready to continue to cooperate with BRICS partners, deepen practical cooperation in various fields, and further contribute to the sustainable and steady growth of the global economy,” he said.
Russia, the “R” in BRICS, similarly rejected Trump's remarks on Monday.
“More and more countries are switching to using their own currencies in trade and foreign economic activities,” Kremlin spokesman Dmitry Peskov said.
“If the United States uses force, so-called economic power, to force countries to use the dollar, the tendency to switch to their own currencies will become even stronger,” Peskov predicted.
“The dollar is starting to lose its attractiveness as a reserve currency for many countries,” he argued.
Lin and Peskov were reacting to President Trump's remarks. caveat BRICS members on Saturday argued that plans to create a new currency to replace the US dollar as a medium for international trade should be abandoned.
“I’m done with the idea that the BRICS countries are going to move away from the dollar while we sit on the sidelines,” Trump originally said on his preferred social media platform, Truth Social.
“We demand a commitment from these countries not to create a new BRICS currency or support any other currency to replace the mighty US dollar. “You should expect to say goodbye to sales to the U.S. economy,” President Trump wrote, making it clear that he has no plans for higher tariffs or capitalized trade restrictions.
“They can go find another 'duck'!” BRICS has no chance of replacing the US dollar in international trade, and any country that aspires to do so should bid farewell to the United States,” President Trump declared.
Indeed, the BRICS are talking about developing their own currency, encouraged by China and Russia, which have long plotted to dethrone the dollar. China and Russia are particularly fixated on replacing the dollar because they believe it gives the United States too much power to impose financial sanctions.
Immediately after Russia invaded Ukraine in February 2022, it was banned from the Belgium-based SWIFT trading system, and has continued to do so since then. demand loudly Since then, an alternative network of international finance has emerged. But the Russian government also argues that Western countries gained an advantage by keeping SWIFT out because the Russian currency was insulated from fluctuations in international currency markets.
BRICS expanded There were many participants from the original group of Brazil, Russia, India, China, and South Africa (a group added several years after BRICs was formed in 2009). In 2023, five new countries will become full members, including Egypt, Iran, Saudi Arabia, the United Arab Emirates, and Ethiopia. In October 2024, 13 more non-voting “partner countries” will be announced, some of which may become full members.
The expansion of BRICS membership makes it more difficult for the group to launch projects such as an international currency. This is because there is little agreement among the expanded membership on how such a currency would work. For example, a member state with a high growth rate will have very different expectations than a member state with a less active economy. India would be very reluctant to give rival China, the dominant power in the BRICS, any influence over international financial transactions.
Moreover, some of the enlarged BRICS member states are not keen on alienating the West or divorcing the US dollar, especially with Donald Trump throwing capital letters for attention. do not have.
Deutsche Welle (DW) noticed On Tuesday, BRICS has been talking about developing its own currency since its creation more than 25 years ago, and even when the BRICS currency came up again at a summit in South Africa last year, BRICS leaders said they were “not sure if it would happen.” It will probably take many years.” before such a project is launched. as D.W. As pointed out, it took over 40 years for the euro to go from square one to becoming a legal tender.
At the most recent BRICS summit in October, no other member states showed much interest in Russian President Vladimir Putin's proposal for a blockchain-based alternative to SWIFT. Most member countries would rather strengthen their currencies than devote significant resources to creating an alternative to the US dollar.
South Africa, two days after President Trump made tariff threats claimed that BRICS has no active plans to create its own currency.
“Recent false reports have incorrectly suggested that BRICS is planning to create a new currency. This is not true. Discussion within BRICS is that trade between member countries using their own currency ” said the South African Department of International Relations and Co-operation (DIRCO).
“Rather than focusing on de-dollarization, South Africa supports greater use of its currency in international trade and financial transactions to cushion the impact of exchange rate fluctuations,” DIRCO added.
