BY C STONE | STONE NEWS NETWORK
U.S. President-elect Donald Trump has threatened to enforce 100% tariffs against the bloc of 9 nations if they act to undermine the U.S. dollar.
The BRIC nations consist of:
Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran and the United Arab Emirates.
Trump, in a Truth Social post, said: “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy."
The U.S. dollar is dominant and represents 58% of the world's foreign exchange reserves. It is primarily used to buy items such as oil. With the use of non-dollar currencies in trading, known as "de-dollarization" threatens the dominance of the U.S. greenback.
Russian President Vladimir Putin accused the U.S. of weaponizing the dollar and said it "was a big mistake."
With sanctions hitting Russia, they are not allowed to trade in the currency, forcing them to use alternatives.
Russia has pushed for a new payment system that would offer alternatives to the global bank network - SWIFT - and allow Russia to escape Western sanctions.
This continued interest in trading has become the #1 spotlight for the upcoming U.S. President and his administration.
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