YEREVAN (CoinChapter.com) — Russia dismissed Donald Trump’s warning of 100% tariffs on BRICS countries, stating that the group is not working on a currency to challenge the US dollar. Kremlin spokesman Dmitry Peskov clarified that BRICS is focused on investment projects, not a new global currency.
In a Jan. 31 report by Reuters, Peskov said,
“The point is that BRICS is not talking about creating a common currency, nor has it ever done so.”
Instead, he emphasized that BRICS nations aim to develop investment platforms to strengthen financial cooperation.
Kremlin spokesman Dmitry Peskov attends Russian President Vladimir Putin’s annual end-of-year press conference and phone-in, in Moscow, Russia December 19, 2024. REUTERS/Maxim ShemetovBRICS Currency Discussions and the Gold-Backed ‘Unit’
Talks about a BRICS currency have circulated among member nations since 2023. Some countries, including Brazil, have proposed a common currency for trade and investment to reduce dependence on the US dollar.
In October 2024, BRICS members reportedly discussed a gold-backed currency called the “Unit” as a possible cross-border settlement tool. The idea sparked debate about whether BRICS intended to challenge the dollar’s role in global trade.
Despite these discussions, Russia maintains that BRICS is not creating a new reserve currency or a direct alternative to the US dollar.
Trump Threatens 100% Tariffs on BRICS Countries
On Jan. 30, Donald Trump declared that any effort by BRICS to shift away from the US dollar would not be tolerated. He warned that the United States would impose 100% tariffs on BRICS nations if they pursued such plans.
Trump stated,
“The idea that the BRICS countries are trying to move away from the dollar, while we stand by and watch, is over.”
He added,
“There is no chance that BRICS will replace the US dollar in international trade or anywhere else, and any country that tries should say hello to tariffs and goodbye to America.”
Trump Tariff Threat on BRICS. Source: TrumpDailyPostsHis remarks follow similar tariff threats he made in late 2024, reinforcing his position against financial systems that bypass the US dollar.
Russia’s Response to Trump’s Statements
Dmitry Peskov addressed Trump’s warnings, pointing out that the former president made similar statements after becoming president-elect.
Peskov said,
“There have been statements like this before, back when he was just president-elect.”
He added that US experts should explain BRICS’ actual objectives to Trump.
BRICS Economic Strategies and US Dollar Reliance
While Trump views BRICS discussions as a challenge to the US dollar, member nations focus on economic cooperation rather than currency competition.
BRICS countries have explored alternative trade mechanisms to reduce exposure to dollar volatility, but their efforts remain centered on strengthening internal financial systems.
Trump’s Executive Order on Digital Finance
On Jan. 23, Donald Trump signed an executive order reinforcing the US dollar’s role in digital finance. The order promotes dollar-backed stablecoins while banning central bank digital currencies (CBDCs).
Notably, Trump may extend his tariff threats to nations developing CBDCs. Meanwhile, European Central Bank Executive Board member Piero Cipollone has urged the European Union to continue working on its digital euro project to maintain financial stability within the region.
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