BRICS Currency Predicament: Navigating Global Trade Without US Dollar

The proposed imposition of 100% US tariffs on BRICS countries if they adopt a common currency is deemed unrealistic by the Global Trade Research Initiative. The focus for India should be on developing a viable local currency trading system rather than total reliance on either US dollar or BRICS currency.

In a recent development, US President-elect Donald Trump warned BRICS countries of potential 100% tariffs if they pursue a BRICS currency, steering clear of the US dollar. Global Trade Research Initiative (GTRI) has labeled this measure as impractical.

BRICS, a major international group formed in 2009, looks into alternatives to the US dollar for its member countries, which include South Africa, Iran, Egypt, Ethiopia, and the UAE. Despite pressures, India remains neutral, focusing instead on enhancing its financial infrastructure for local trading systems.

The GTRI cautions that hefty tariffs could backfire, driving up consumer costs in the US and straining diplomatic ties. The initiative emphasizes the right of countries to choose financial systems that serve their national interests within a multipolar global economy.

(With inputs from agencies.)