Russia has responded to Donald Trump’s latest tariff warning against BRICS, stating that the economic alliance has no plans to introduce a common currency to rival the US dollar. The Kremlin’s remarks come amid growing discussions about financial independence among BRICS nations.
Russia Shuts Down Dollar Replacement Speculation
The BRICS coalition—comprising Brazil, Russia, India, China, and South Africa—has been actively working on strengthening economic ties. However, Kremlin spokesman Dmitry Peskov dismissed claims that the group aims to create a unified currency to challenge the dollar’s supremacy.
“There has never been any discussion within BRICS about forming a single currency,” Peskov clarified. Instead, the alliance is focused on developing new investment frameworks to support economic growth in member states.
Exploring Alternatives Without a Common Currency
Despite rejecting a single currency, BRICS nations have been exploring ways to reduce dependency on the US dollar in trade. In 2023, Brazil and other members proposed a mechanism to facilitate cross-border transactions without relying on the dollar.
During the October 2024 summit, BRICS reportedly debated the possibility of a gold-backed currency known as the “Unit.” This proposal was seen as a move to enhance trade flexibility rather than an outright replacement for the dollar in global markets.
Trump Threatens BRICS with Heavy Tariffs
On January 30, Trump issued a stern warning against any BRICS-led de-dollarisation efforts. He suggested that if BRICS countries attempted to move away from the US dollar, they would face severe economic repercussions.
“The idea that BRICS Countries are trying to move away from the dollar, while we stand by and watch, is over,” Trump stated, adding that any country taking such steps should expect 100% tariffs.
In response, Peskov downplayed Trump’s remarks, pointing out that similar threats had been made. He suggested that the former US president might need a clearer understanding of BRICS’ economic strategies.
“This is not the first time such statements have been made. Perhaps US experts should explain the BRICS agenda to Mr. Trump,” Peskov said.
While BRICS continues strengthening financial cooperation, Russia maintains no immediate plan to introduce a rival currency to the dollar. However, Trump’s aggressive stance signals growing economic tensions between the US and BRICS nations.
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Rodcas Consulting Group