The relationship between developing nations and the US dollar has been turbulent in recent decades, with the decision in 1944 to adopt the dollar as the global trade currency having a lasting impact. Now, with the BRICS bloc musing at a new common currency and countries like Russia and China pushing for de-dollarisation, Trump has taken to social media to threaten against any such moves. While India has denied any plans to move away from the dollar, Trump's remarks have raised eyebrows and added to the already tense relationship between the US and BRICS nations.
The BRICS and the US Dollar: A Shifting Currency Landscape
Background
The establishment of the US dollar as the global reserve currency in 1944 marked a significant turning point in international finance. However, in recent decades, this dominance has faced increasing challenges, particularly from emerging economies.
The BRICS (Brazil, Russia, India, China, and South Africa) has emerged as a powerful grouping of developing nations that have expressed concerns about the volatility and overreliance on the US dollar. These concerns have been fueled by factors such as:
The BRICS' Push for De-Dollarization
In response to these concerns, the BRICS nations have been exploring alternative currency arrangements. In 2015, they announced plans to establish a common reserve currency, the BRICS Contingency Reserve Arrangement (CRA). This arrangement, initially funded with $100 billion, is intended to provide financial assistance to member countries during economic crises and reduce dependence on the US dollar.
Russia and China, in particular, have been vocal advocates for de-dollarization. Russia has been reducing its holdings of US Treasury bonds and promoting alternative payment systems, while China is exploring internationalization of its currency, the renminbi.
Trump's Threat
In a series of tweets in 2018, US President Donald Trump threatened economic retaliation against any country that considered moving away from the US dollar. He warned that countries doing business with Iran, which the US had recently sanctioned, would "have a very big economic problem" if they used currencies other than the dollar.
Trump's remarks were met with criticism from BRICS nations and many analysts. They were seen as an attempt to bully countries into continuing to use the US dollar, despite their concerns about its stability and fairness.
Top 5 FAQs
1. What is the BRICS Contingency Reserve Arrangement (CRA)? The CRA is a currency pool established by the BRICS nations to provide financial assistance to member countries during economic crises and reduce dependence on the US dollar.
2. Why are the BRICS interested in de-dollarization? The BRICS nations are concerned about the volatility and overreliance on the US dollar, as well as the potential for currency manipulation and economic blackmail by the US.
3. What is the impact of Trump's threat against de-dollarization? Trump's threat has raised concerns that the US is willing to use economic coercion to maintain the dominance of the US dollar.
4. Is the US dollar still the global reserve currency? Yes, the US dollar remains the world's dominant reserve currency, accounting for over 60% of global reserves.
5. What are the implications of a potential shift away from the US dollar? A shift away from the US dollar could have significant implications for the global economy, including reduced demand for US exports, increased volatility in currency markets, and potentially higher inflation.
Enter this month's competition for a chance to win one of two fantastic Motorola Edge 50 Pro handsets worth £600 each. With its sleek design, impressive camera system and fast charging capabilities, this phone is not to be missed. Plus, each winner will receive a limited-edition F1 engraved case to complete the package. All you have to do is answer a simple question on motorola.co.uk.
According to the Comptroller and Auditor General of India's report, state-owned telecom company BSNL incurred a loss of Rs 1,757.76 crore due to financial lapses in its Master Service Agreement with Reliance Jio Infocomm Ltd (RJIL). These lapses include BSNL's failure to enforce contractual terms, leading to revenue shortages and loss of potential interest. The report also highlights additional losses incurred by BSNL due to inefficient planning and procurement, resulting in unnecessary expenditure and non-realization of tax credits.
The National Company Law Tribunal has intervened in the ongoing dispute between Aakash Education Services Limited and Byju's, directing a status quo on the former's shareholding. This move came after the Resolution Professional of Byju's filed a plea in court. As one of India's leading ed-tech companies, Byju's has been aggressive in its acquisition of competitors such as Aakash Institute, and this development adds to the ongoing legal battles in the business world.
FOX News Network, LLC has announced exclusive offers for members of the military and first responders on their streaming platform, FOX Nation. The offers include discounted rates and additional benefits for those who serve in these roles. To learn more and take advantage of these offers, interested individuals can contact the designated help centers or visit the FAQ page on the FOX News website. With this initiative, FOX News continues to show their support for those who serve and protect their communities.
The Brihanmumbai Municipal Corporation (BMC) exceeded expectations by collecting Rs 6,172 crore in property tax in the financial year 2024-25. This marks a 30% increase compared to the previous year and is the highest ever collection for India's largest civic body. BMC officials attribute the success to consistent follow-ups, enhanced recovery measures, and citizen compliance. Despite facing financial strain, tax rates in Mumbai have remained unchanged since 2015, leading the BMC to explore other revenue sources.
Following a long wait, the Staff Selection Commission (SSC) has finally declared the final results of the Combined Graduate Level Examination (CGL) 2024,which was held on 12.03.2025. Out of 1267 candidates whose results were withheld, the SSC has released the scores for 219 candidates on its official website. The remaining results are still pending for further scrutiny, and candidates can check their scorecards by logging into the website using their registration number and password.
In a major move to revive the struggling telecom company Vodafone Idea (Vi), the Indian government has decided to convert an additional Rs 36,950 crore of the company's dues into equity, bringing the government's total stake in the company to nearly 49%. This follows a previous infusion of Rs 6,133 crore in equity in February 2023. With this takeover, the government becomes the single-largest shareholder in Vi and will continue to have operational control of the company. However, this decision has raised concerns about potential losses for taxpayers, as the government will have to acquire these shares at a premium of more than 47%.
The debut of Mubarak Coin on Binance, the world's largest crypto exchange, was met with unexpected results as the token crashed by 40% in just 24 hours. This sudden drop has sparked intense discussions among investors, with some seeing it as a normal correction and others fearing a larger shakeout. The token's listing on Binance was expected to boost its price, but instead, it triggered a sell-off by whales (large investors) taking profits, leading to panic selling. Some traders who hoped to ride the wave for huge profits in the futures market were left disappointed as insiders allegedly dumped large amounts of the crypto, further causing price declines. Technical indicators suggest that the selling pressure is likely to continue.
Fox News Network, LLC has announced new offers for both military members and first responders. These discounts will be available on their streaming service, Fox Nation, and can be accessed by contacting the online representatives or through the FAQ section on the network's website. This move comes amid the company's efforts to expand its audience and cater to different demographics.
In a major move to consolidate his influence, billionaire entrepreneur Elon Musk's AI venture xAI has acquired X, formerly known as Twitter, for a whopping $33 billion. This merger is expected to streamline the development of Musk's AI model, Grok, by combining xAI's advanced AI capabilities with X's massive reach. The all-stock transaction values xAI at $80 billion, solidifying Musk's diverse portfolio which already includes Tesla and SpaceX. Stay tuned for updates on how this acquisition will impact the future of AI and technology.