President-elect Donald Trump has threatened to slap a 100%
tariff on the BRICS nations if they try to abandon the United States dollar as
the reserve currency. Is it realistic for the BRICS countries to completely
move away from the dollar? Not completely. When BRICS started in the original
formation of the 5 countries, they were utilizing theU.S. dollar in 100% of transactions. Local currency
was very minimal on international trade. Today, they're doing 65% of all their
transactions in local currencies. But on the international stage, there's still
less than 1/3 of the dollar usage by the BRICS members. Donald Trump is going
to come in and he's going to negotiate these tariffs. It's going to be surgical.
Does that mean BRICS can take over the dollar reserve status? Not in the near
future, but they are backing their new BRICS currency with gold, and that has
created a lot more credibility.
