US President Donald Trump has doubled down on his tariff threat on BRICS nations, including South Africa, should they forge ahead with creating a new shared currency. <\/p>\n\n\n\n
This threat, declared in his inaugural address, sent a clear message: any attempt to challenge the dominance of the US dollar will be met with severe economic consequences.<\/p>\n\n\n\n
“If the BRICS nations want to do that, that’s okay, but we’re going to put at least a 100% tariff on the business they do with the United States,” Trump said, emphasising that any such actions would result in severe penalties.<\/p>\n\n\n\n
He repeated that countries would face hefty tariffs even if they considered reducing the dollar’s role in global trade.<\/p>\n\n\n\n
However, key players within the BRICS alliance have dispelled the idea of an imminent new currency.<\/p>\n\n\n\n
Officials from South Africa and India have categorically denied any concrete plans for such a move, emphasising that discussions within the bloc have primarily centred on increasing trade using their own national currencies.<\/p>\n\n\n\n
They argue that this approach aims to mitigate the impact of volatile foreign exchange markets and promote financial stability within the bloc.<\/p>\n\n\n\n
In September, Finance Minister Enoch Godongwana said the BRICS group of developing market nations\u00a0had yet to decide whether to introduce a common digital currency despite calls from within the bloc.<\/p>\n\n\n\n
South Africa’s Department of International Relations and Cooperation further clarified that the current focus is not on “de-dollarisation” but on strengthening correspondent banking networks and developing infrastructure for settlements in national currencies.<\/p>\n\n\n\n
Like Godongwana, India\u2019s central bank chief said the so-called BRICS bloc had not decided to create a common currency to reduce the dollar’s usage.<\/p>\n\n\n\n
\u201cBRICS currency was an idea raised by one of the members and was discussed, but no decision has been made,\u201d Reserve Bank of India Governor Shaktikanta Das said.<\/p>\n\n\n\n
Despite these assurances, the idea of a BRICS digital currency continues to simmer. <\/p>\n\n\n\n
Russia, in particular, has been actively promoting BRICS Pay, a new digital payments system that facilitates transactions within the bloc.<\/p>\n\n\n\n
This system, recently tested at the BRICS Business Forum, showcases the bloc’s determination to explore alternative pathways for international trade and reduce reliance on the US dollar.<\/p>\n\n\n\n
While the concept of a digital currency gains momentum, South Africa is exercising caution. <\/p>\n\n\n\n
The National Treasury has stated that the country remains in the early stages of researching digital assets and has not yet committed to BRICS Pay. <\/p>\n\n\n\n
This cautious approach reflects the complexity surrounding digital currencies and the potential challenges associated with their implementation. <\/p>\n\n\n\n
South Africa recognises the need for thorough analysis and careful consideration before embracing such a significant shift in its financial landscape.<\/p>\n\n\n\n
The President’s tariff threat has brought the debate over the US dollar’s global dominance to the forefront. <\/p>\n\n\n\n
While BRICS nations explore avenues for greater financial independence, the potential repercussions of challenging the existing system loom large. <\/p>\n\n\n\n
The bloc faces a delicate balancing act\u2014navigating international trade while striving to create a more robust and resilient financial framework for its members. <\/p>\n\n\n\n
The future of BRICS and its aspirations to reshape the global economic order remain uncertain as this high-stakes game of financial diplomacy unfolds.<\/p>\n","protected":false},"excerpt":{"rendered":"
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