15h00 ▪
5
min reading ▪ by
Luc Jose A.
International economic dynamics always attract keen interest, particularly when coalitions like BRICS are seen as a threat to the hegemony of the US dollar. However, recent statements from Russia, India and South Africa have clarified their position. Indeed, these countries affirm that no plan aims to weaken the American currency. They firmly reject accusations of “dedollarization” and emphasize their desire to maintain stable relations with the United States.
A concerted defense to preserve monetary diplomacy
Debates around possible “dedollarization” led by the BRICS alliance are attracting increasing attention, but recent developments have provided important clarifications. Thus, during an interview granted on December 16, 2024 to the Russian News Agency, Sergey Ryabkov, a leading Russian diplomat, formally denied any project which aims to weaken the position of the dollar as a global reserve currency. He stated firmly: “We are prepared to explain to Trump, or to anyone, that we are not seeking to encroach on the dollar. We are simply drawing conclusions from the irresponsible policies pursued by Washington.”
These remarks align with those of Indian Foreign Minister S. Jaishankar, who reaffirmed India's commitment to its economic relations with the United States, described as a major trading partner. He also stressed that there is currently no initiative that aims to introduce a common currency for BRICS. The objective of financial discussions within the group is limited to the facilitation of transactions between its members through the use of their respective national currencies.
For its part, South Africa was keen to correct erroneous interpretations of the group's intentions. South African officials have clarified that discussions on a possible BRICS currency are not aimed at replacing the dollar, but rather at simplifying intra-regional trade. This harmonization of positions between the three countries reflects a shared desire to defuse tensions with Washington and assert their economic autonomy in a multilateral framework.
Trump's ultimatum and international perspectives
Donald Trump reacted with unusual vigor to the debates surrounding BRICS economic projects. The president-elect of the United States has threatened to impose 100% tariffs on exports from member countries if they materialize the idea of a common currency intended to compete with the dollar. He bluntly stated: “the dollar remains unrivaled, and any country that seeks to replace it can give up on trade with America.” This declaration, with protectionist overtones, reflects growing concern in Washington about the emergence of solutions likely to reduce the influence of the dollar on the world economy.
However, for BRICS members, the issues are far from simple. Although the creation of a common currency is now ruled out, discussions focus on the expanded use of national currencies in internal trade. This choice reflects an increased desire of the countries concerned to increase their economic autonomy in the face of dependence on the dollar. However, this gradual change could create considerable challenges, particularly logistically and financially. Developing infrastructure suitable for local currency transactions and coordinating members' monetary policies will require significant efforts.
These initiatives, although modest for now, risk redefining trade relations within BRICS. They could also exert a lasting influence on the global monetary order, and encourage other economic blocs to consider similar approaches. In such a context, the strategic positioning of the BRICS will have to reconcile their ambitions for autonomy with the constraints imposed by a system still largely dominated by the American dollar. The next stages of these discussions will be crucial to outline the contours of this new global economic balance.
Ultimately, these events illustrate how global monetary tensions continue to shape geopolitical relations. As BRICS seeks to balance its economic ambitions with external pressures, it remains to be seen whether this appeasement strategy will be enough to defuse US fears. This debate over the future of the global monetary system is only just beginning, with implications that could redefine the rules of international trade in the years to come.
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Luc Jose A.
A graduate of Sciences Po Toulouse and holder of a blockchain consultant certification issued by Alyra, I joined the Cointribune adventure in 2019. Convinced of the potential of blockchain to transform many sectors of the economy, I took the commitment to raise awareness and inform the general public about this constantly evolving ecosystem. My goal is to enable everyone to better understand blockchain and seize the opportunities it offers. I strive every day to provide an objective analysis of current events, to decipher market trends, to relay the latest technological innovations and to put into perspective the economic and societal issues of this ongoing revolution.
