BRICS Clarify : No Plans To Undermine The US Dollar

The dynamics of international economics always attract marked interest, particularly when coalitions like the BRICS are perceived as a threat to the hegemony of the US dollar. However, the recent statements from Russia, India, and South Africa have clarified their position. Indeed, these countries assert that no plan aims to weaken the American currency. They firmly reject accusations of “dollarization” and emphasize their willingness to maintain stable relations with the United States.

A concerted defense to preserve monetary diplomacy

The debates surrounding a potential “dollarization” led by the BRICS alliance provoke increasing attention, but recent developments have brought important clarifications. Thus, in an interview granted on December 16, 2024, to the Russian News Agency, Sergey Ryabkov, a leading Russian diplomat, formally denied any project aiming to weaken the dollar’s position as the world’s reserve currency. He stated firmly: “we are ready to explain to Trump, or anyone, that we are not trying to encroach upon the dollar. We are simply drawing conclusions from the irresponsible policies pursued by Washington.”

These remarks align with those of Indian Foreign Minister S. Jaishankar, who reaffirmed India’s commitment to its economic relations with the United States, described as a major trade partner. He also emphasized that there is currently no initiative aimed at introducing a common currency for the BRICS. The goal of financial discussions within the group is limited to facilitating transactions between its members through the use of their respective national currencies.

For its part, South Africa sought to rectify erroneous interpretations regarding the group’s intentions. South African officials clarified that discussions on a potential BRICS currency were not aimed at replacing the dollar but rather at simplifying intraregional trade. This harmonization of positions among the three countries reflects a shared willingness to de-escalate tensions with Washington and assert their economic autonomy in a multilateral framework.

Trump’s ultimatum and international perspectives

Donald Trump reacted with unusual vigor to the debates surrounding the BRICS’ economic projects. The elected president of the United States threatened to impose 100 % tariffs on exports from member countries if they were to realize the idea of a common currency to compete with the dollar. He stated bluntly: “the dollar remains unmatched, and any country that seeks to replace it can forget about trade with America.” This statement, with its protectionist tones, reflects growing concern in Washington over the emergence of solutions likely to reduce the dollar’s influence on the global economy.

However, for BRICS members, the stakes are far from simple. Although the creation of a common currency is now off the table, discussions are focused on the expanded use of national currencies in internal trade exchanges. This choice reflects an increased willingness among the concerned countries to boost their economic autonomy in the face of dependency on the dollar. However, this gradual change could lead to significant challenges, particularly in logistical and financial aspects. The development of infrastructures suitable for transactions in local currencies and the coordination of monetary policies among members will require significant efforts.

These initiatives, while modest for now, risk redefining trade relations within the BRICS. They could also exert a lasting influence on the global monetary order and encourage other economic blocs to consider similar approaches. In such a context, the strategic positioning of the BRICS will need to reconcile their ambitions for autonomy with the constraints imposed by a system still largely dominated by the US dollar. The next steps in these discussions will be crucial for outlining the contours of this new global economic balance.

Ultimately, these events illustrate how global monetary tensions continue to shape geopolitical relations. As the BRICS seek to balance their economic ambitions with external pressures, it remains to be seen whether this appeasement strategy will be enough to defuse American fears. This debate about the future of the global monetary system is just beginning, with implications that could redefine the rules of international trade in the years to come.