The United States is slowly losing its hold as several countries have united to bring down the dollar. The BRICS bloc, consisting of Brazil, Russia, China, India, and South Africa, has been making strides with regard to de-dollarization. Thanks to China and Russia, over 90% of their bilateral commerce has been de-dollarized.
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The Impact Of De-Dollarization And Trump’s Response
It should be noted that several countries are trying to evade the sanctions imposed by the United States. Severe economic sanctions were placed on Russia in February 2022 after the crisis in Ukraine escalated.
Since being cut off from the Western banking system, Russia has sought alternate trading channels, which has led some of its foreign allies to contemplate taking similar actions. This has been a big boost for de-dollarization.
Economic Sanctions And Their Role In De-Dollarization
Amidst this, the U.S. has been prepping for the presidential elections, and Donald Trump has been vocal about his fight against de-dollarization. Appearing at a recent campaign rally in Wisconsin, Trump said,
“I hate when countries go off the dollar. I would not allow countries to go off the dollar. They’re not going to leave the dollar with me. I’ll say, ‘You leave the dollar, you’re not doing business with the United States, because we’re going to put 100% tariff on your goods.”
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Donald Trump Vows To Save The Dollar
Several countries are looking for alternatives to the U.S. dollar. However, Trump pledged to challenge governments in the de-dollarization movement. He noted that it would be like “losing a revolutionary war.” The former president further said,
“It is currently under major siege. Many countries are leaving the dollar. That will be, that will be a hit to our country, just like losing a war. And we can’t let that happen”.
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