BRICS Currency vs US Dollar – A massive battle within the world of currency.
The president elect Donald Trump announced he would impose 100% tariffs to countries trying to move away from the US dollar. The statement caused a stir and was a direct shot at the BRICS countries since they proposed to use nation currency more than the dollar.
BRICS leaders said that they want to utilize BRICS as national currency more than the US dollar.
Is US dollar in trouble?
Is 100% Tariff Good for US Economy?
- The United States relies heavily on BRICS countries for important goods such as raw minerals. The bloc produces approximately 70% of these goods and materials, whereby the US exports food and energy of which are available within the BRICS sources.
- The United States services and intellectual properties worth approximately $1.1 trillion in exports. However BRICS can replace these with local alternatives, which in turn would weaken the US dollar
- US Dollar hold world’s most reserved currency; however, BRICS is already causing huge impact, reducing its reliance of the dollar currency. Countries like Russia are shifting to local currencies for trade, of which 65% of BRICS-to-BRICS transactions have bypass the dollar.
- BRICS countries proposed in the 2009 submit, the need for new currency which could results in de-dollarizing of the US dollar. The proposed 100% tariff from the president elect Donald Trump would speed up the global de-dollarization, reduce demand for US exports, and drive further the US towards economic instability.
Which Countries are in BRICS?
- Brazil
- Russia
- India
- China
- South Africa
New BRICS Members
- Saudi Arabia
- Egypt
- United Arab Emirates (UAE)
- Iran
- Ethiopia
US Trade Comparison with BRICS Countries vs New BRICS members
