US Presidential candidate Vivek Ramaswamy is calling a potential BRICS common currency a major problem for the US Government. Responding to a reporter at a press gaggle, Ramaswamy explained how the BRICS alliance and its de-dollarization mission is a threat to the US that needs to be discussed more.
“This is a major problem for the United States,” he said to the reporter who asked about BRICS developing their new reserve currency. “This would permanently increase our borrowing cost if the dollar is no longer the established reserve currency of the world.” He adds that the US battling trillions in debt will not help its fight in a potential global battle with the BRICS common currency, saying the present is “not the great time to increase your native borrowing costs.”
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In terms of a solution to the BRICS common currency, Vivek Ramaswamy says, “The right way to deal with it, though, is not to try to swat that down, but increase the value proposition of the dollar itself by pegging the dollar to hard commodities.” He adds that the single mandate for the Federal Reserve, the US central bank, should be dollar stability.
The US Dollar has been far and away the leading global reserve currency for decades, used in trade by most countries. However, growing interest in BRICS currency coupled with distrust in the US dollar is fueling the BRICS global common currency. With the expansion of the bloc expected in 2024 and an update on BRICS currency and pay services, Ramaswamy feels that the US needs to tackle this potential threat before it grows even more.