Trump Issues Threat of Sanctions Towards BRICS Nations for Developing New Currency
The trade group BRICS, consisting of Brazil, Russia, India, China, and South Africa, has expanded this year to include Egypt, Ethiopia, Iran, and the United Arab Emirates, forming BRICS+. This expansion comes despite Russia's invasion of Ukraine and the subsequent sanctions against it.
The expansion of BRICS+ could potentially strengthen the group's economic and political influence. However, the move has raised concerns in the United States, with President-elect Donald Trump threatening BRICS countries with 100% sanctions if they attempt to create a new currency or dislodge the dollar through another alternative.
Russia, a member of BRICS, proposed the idea of a common BRICS currency before it invaded Ukraine. However, Russia's central bank has reservations about the feasibility of creating such a currency. The creation of a common BRICS currency would be very hard to achieve, according to Russia's central bank.
The proposal for a common BRICS currency is linked to efforts to reduce reliance on the US dollar. Russia disclosed its plans for a common BRICS currency around or before 2024, involving the BRICS members—Brazil, Russia, India, China, South Africa—and considering cooperation with additional interested countries beyond BRICS itself.
The BRICS+ expansion includes two sanctioned countries: Russia and Iran. The inclusion of these countries could further complicate the situation, as the U.S. has already threatened sanctions against BRICS countries if they proceed with creating a new currency or dislodging the dollar.
The initial formation of BRICS was as a trade group, and the expansion to BRICS+ is expected to strengthen this aspect. The UAE, a member of both BRICS and BRICS+, could play a significant role in this regard, potentially boosting the group's economic influence.
In conclusion, the expansion of BRICS to BRICS+ and the proposal for a common BRICS currency present a complex situation. The feasibility of the common currency is questionable, given the reservations of Russia's central bank, and the inclusion of sanctioned countries could lead to further complications. The stance of the U.S., as represented by President-elect Trump's threats of sanctions, adds another layer of complexity to this scenario.
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