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In a recent interview, former President Donald Trump, who is also a current Republican candidate for the US presidency, voiced strong opposition to the trend of countries moving away from the US dollar. Trump stated, "I hate when countries go off the dollar... I would not allow countries to go off the dollar because when we lose that standard, that will be like losing a revolutionary war. That will be a hit to our country." This statement underscores Trump's concern about the dollar's status as the world's reserve currency and its critical role in maintaining US economic stability and global influence.
Donald Trump's comments against the de-dollarization efforts by BRICS and other global south countries mark a significant stance by a Western leader on this issue. Trump has vocally criticized the trend, warning that the U.S. is losing influence as more countries move away from the dollar.
Economic advisers to former President Donald Trump are considering various strategies to discourage countries from moving away from the U.S. dollar, a process known as de-dollarization. The potential measures include implementing tariffs, imposing export controls, and charging countries with currency manipulation. These steps aim to maintain the dollar's dominance in global trade and finance, which Trump and his advisers view as crucial for U.S. economic stability and influence.
This move is partly in response to actions taken by countries like Russia and the BRICS nations, which have been considering or implementing measures to reduce their reliance on the dollar. The BRICS nations, for example, have discussed de-dollarization to enhance their economic autonomy and reduce exposure to U.S. financial policies.
Trump's comments also highlight his belief that current policies under President Joe Biden are weakening the dollar's global standing, which he equates to losing a significant war. Trump has emphasized the need for a stable dollar and criticized any interventionist policies that might undermine this stability.
Trump has expressed his concern over the increasing trend of countries moving away from the U.S. dollar, stating that they are "dropping the U.S. dollar like flies." He emphasized the gravity of the situation, suggesting that losing the dollar's dominant position in global trade would be akin to "losing a war."
in a recent interview former president Donald Trump who is also a current Republican candidate for the US Presidency vetoed strong opposition to the trend of countries moving away from the US dollar Trump stated I hate when countries go off the dollar I would not allow countries to go off the dollar because when we lose that standard that will be like losing a revolutionary war that will be a hit to our country this statement underscores Trump's concern about the Dollar's status as the world's Reserve currency and its critical role in maintaining US economic stability and Global influence Donald Trump's comments against the dollarization efforts by bricks and other Global South countries Mark a significant stance by a western leader on this trending move by global South Trump has vocally criticized the trend warning that the US is losing influence as more countries move away from the dollar economic advisers to former president Donald Trump are considering various strategies to discourage countries from moving away from the US dollar a process known as dollarization the potential measures include implementing tariffs imposing export controls and charging countries with currency manipulation these steps aim to maintain the Dollar's dominance in global trade and finance which Trump and his advisers view as crucial for US economic stability and influence this move is partly in response to actions taken by countries like Russia and the brics Nations which have been considering or implementing measures to reduce their Reliance on the dollar the brics Nations for example have discussed DD dollarization to enhance their economic autonomy and reduce exposure to US Financial policies Trump's comments also highlight his belief that current policies under President Joe Biden are weakening the Dollar's Global standing which he equates to losing a significant War Trump has emphasized the need for a stable dollar and criticized any interventionist policies that might undermine this stability Trump has expressed his concern over the increasing trend of countries moving away from the US dollar stating that they are dropping the US dollar like flies he emphasized the gravity of the situation suggesting that losing the Dollar's dominant position in global trade would be akin to losing a war the Global Financial landscape has witnessed a significant shift over the past few decades with the gradual move dollarization this process marked by a reduction in the use of the US dollar for international trade and Reserve Holdings has has been influenced by a series of notable events and strategic countries the European Union launched the Euro providing a significant alternative to the US dollar as a reserve currency the Euro has since become the second most held Reserve currency globally accounting for just reserves under us sanctions countries like Iran and Venezuela began trading oil in euros and other currencies this move was part of broader efforts to bypass the US Financial system and reduce Reliance on the dollar for transactions Russia and China significantly increased their bilateral trade using their own currencies reducing dependence on the dollar this period also saw the establishment of the Asian infrastructure Investment Bank aib by China aimed at financing projects in Asia without relying on the dollar the drive for dollarization intensified with geopolitical tensions and economic sanctions countries like Russia China and India have actively pursued reducing their dollar dependence notably during the bricks Summit in 2022 discussions included creating a new Reserve currency backed by gold in 2023 China and Brazil agreed to conduct trade using their respective currencies similarly Russia and China expressed intent to abandon the dollar in their bilateral transactions oan countries have also explored reducing Reliance on the dollar euro yen and pound sterling fears of dollarization first emerged prominently after the West imposed severe sanctions on Russia in response to its conflict with Ukraine in 2022 these sanctions restricted Russia's access to the US dollar prompting many countries to reconsider their Reliance on the dollar for international trade and Central Bank Reserves this geopolitical maneuver led to an intensified Push by several Nations to reduce their dependence on the dollar aiming to mitigate the potential impact of future sanctions and the overarching influence of the US Financial system countries like China and Russia have been at the Forefront of this movement for instance China has been encouraging Middle Eastern suppliers to accept the UN for oil transactions signaling a potential shift towards a pan system similarly Russia has mandated that natural gas payments from unfriendly countries be made in Rubles these efforts are part of broader strategies by these nations to undermine the Dollar's dominance and promote their own currencies in global trade furthermore the development and Adoption of Central Bank digital currencies cbdcs by countries like China and India aimed to facilitate quicker and more secure crossb transactions thereby reducing Reliance on the dollar the move towards digital currencies is seen as an essential step in the dollarization process potentially allowing countries to buypass traditional dollar-based Financial systems like Swift and chips however despite these efforts the dollar Remains the world's leading Reserve currency and a primary medium of Exchange in global trade as of 2023 the dollar still constituted 58.4% of global foreign exchange reserves while this is a decrease from 71% in 1999 moreover the Dollar's role in international bond issuance and crossb transactions remains robust indicating that a complete shift away from the dollar is unlikely in the near term the push for dll iation is partly driven by the perception of the dollar being used as a geopolitical weapon the exclusion of Russia from the Swift payment system was a significant Catalyst for countries to seek alternatives to mitigate the risk of similar sanctions in the future as a result while the process of dollarization is accelerating it faces considerable challenges and the Dollar's dominance is expected to continue albeit with increasing competition from other currencies Trump's Administration known for its Nationalist and unilateralist approach would likely see a more confrontational stance towards brics's economic strategies this could lead to strained relations with both allies and adversaries as the US attempts to maintain the Dollar's dominance in systems let's take a quick pause could you do us a favor if you enjoy our content please hit the like button to help even more leave your thoughts and feedback in the comments your engagement as of July 2024 the brics Nations have made significant strides in their dollarization efforts this initiative aims to reduce Reliance on the US dollar in international trade and financial transactions the brics countries are developing a payments platform based on digital currencies and blockchain Technology to bypass the US dollar this system is designed to facilitate trade and investment among member countries without using the dollar China has been at the Forefront of this movement with over 52% of its trade being settled in un as of 2024 Brazil and Argentina have also started trading in their own currencies with China and Bolivia has implemented the use of un for around 10% of its trade countries like Bangladesh and India have signed agreements to conduct trade in their local currencies Bangladesh and Russia are using the Chinese Yan for transactions to buypass us sanctions India has local currency trade LCT agreements with 19 countries facilitating crossborder trade without the dollar Saudi Arabia has begun to accept the yuan in oil trade a significant shift given that oil was traditionally sold exclusively in US Dollars the group has expanded to include new members such as Saudi Arabia Egypt Ethiopia Iran and the UAE this expansion increases the Block's economic influence as these countries collectively represent around 45% of the world's population and produce about 44% of the world's crude oil Brazilian president Louise inao Lula D Silva has advocated for the creation of a common brics currency to facilitate trade and reduced dependency on the US dollar this proposal highlights the group's commitment to economic sovereignty and the reform of international financial institutions like the IMF and World Bank these efforts are driven by several factors including geopolitical rivalry fluctuating foreign exchange reserves and and a desire for greater economic sovereignty geopolitical tensions have significantly reshaped global economic Dynamics compelling Nations and businesses to adapt in various ways the Resurgence of geopolitical rivalries has had a profound impact on global trade and investment patterns for instance the conflict between the US and China has led to a re-evaluation of Supply chains and investment strategies businesses are increasingly moving production to countries like Vietnam and Mexico to mitigate risk risks associated with geopolitical hotspots furthermore the competition for technological Supremacy particularly in AI has intensified prompting countries to innovate and regulate aggressively leading to a fragmented Global Tech landscape the geopolitical environment also influences foreign exchange reserves countries are diversifying their reserves away from traditional currencies like the US dollar towards a broader mix including the Chinese un this shift is partly driven by geopolitical considerations and the desire to reduce dependency on any single currency block nations are increasingly focusing on economic sovereignty to Shield themselves from external shocks this includes promoting domestic production of critical goods and developing policies that prioritize National Security over pure economic gains for example countries are expanding their industrial policies to ensure self-sufficiency in key sectors thereby reducing vulnerability to International Supply Chain disruptions businesses worldwide are adjusting to these geopolitical shifts by reassessing their exposure to risk diversifying Supply chains and exploring new markets they are also becoming more sophisticated in assessing geopolitical risks incorporating these assessments into their strategic planning to better navigate the complex Global landscape these factors underscore a broader Trend towards a multi-polar world where geopolitical considerations heavily influence economic policies and business strategies the resulting fragmentation and realignment are creating both challenges and opportunities for globally that's all for this video thank you for watching this video we sincerely appreciate you joining us today if our content resonated with you or sparked inspiration please consider expressing your support by liking it and 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