Outside Source
A potential “BRICS currency” will not be a rival to the US dollar, but rather a tool for mutual investment within the group, Kremlin spokesman Dmitry Peskov said.
News
Russia countered United States President Donald Trump’s tariff threat against BRICS while claiming the group has no intention to dethrone the US dollar.
BRICS — a group of emerging economies including Brazil, Russia, India, China and South Africa — does not plan to create a new common currency to replace the dollar, Kremlin spokesman Dmitry Peskov said, according to a Jan. 31 report by Reuters.
“The point is that BRICS is not talking about creating a common currency, nor has it ever done so,” Peskov stated.
Instead, the international group is seeking to create new joint investment platforms that would allow mutual investment in developing countries, he added.
A potential “BRICS currency”?
Founded in 2009, BRICS has economic cooperation between its member countries as one of its key objectives.
Since at least 2023, member countries like Brazil have pushed a concept of a “common currency” for trade and investment among the group to reduce their vulnerability to dollar exchange fluctuations.
In October 2024, BRICS members reportedly discussed a potential BRICS currency, with proposals including a gold-backed currency known as the “Unit.” The project has been seen as a potential cross-border settlement tool or a potential digital currency, purportedly posing a threat to the dollar’s supremacy as a global reserve currency.
Trump threatens BRICS with 100% tariffs
On Jan. 30, Trump declared that a potential BRICS currency is unacceptable for the US, threatening with 100% tariffs.
“The idea that the BRICS Countries are trying to move away from the dollar, while we stand by and watch, is over,” Trump posted.
US President Trump threatened to impose 100% tariffs on BRICS countries. Source: TrumpDailyPosts
“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,” he added.
Trump’s latest tariff threat is not the first time he made such statements, Peskov noted, referring to similar threats made in late 2024.
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“There have been statements like this before, back when he was just president-elect,” Peskov said, adding:
“In all likelihood, US experts probably need to explain the BRICS agenda in more detail to Mr. Trump.”
Is Trump likely to threaten CBDCs?
The news comes after Trump signed an executive order on the country’s leadership in digital financial technology on Jan. 23. The order pledged to promote the US dollar’s sovereignty, “including through actions to promote the development and growth of lawful and legitimate dollar-backed stablecoins worldwide.”
While promoting dollar-pegged stablecoins, the Trump administration banned the development of central bank digital currencies (CBDC). According to some observers, Trump may continue threatening tariffs on countries building their CBDC projects.
Meanwhile, European Central Bank Executive Board member Piero Cipollone recently urged the European Union to keep building its CBDC project, the digital euro, as a tool to support Europe’s autonomy.
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This article first appeared at Cointelegraph.com News
