In April 2023, in an event in Roanoke, I asked Senator Mark Warner, D, VA, about the threat of BRICS on the American dollar and what steps the government has been taking to prevent it from damaging the value of the U.S dollar.
Sen. Warner ignored the threat and in a simple answer said, “the American dollar still has value.” Perhaps, Sen. Warner did not want to reveal the government’s agenda and the steps that should be taken to encounter BRICS or he eluded the question for lack of transparency and a clear agenda regarding the BRICS threat. Which is indicative of the U.S authorities not showing the seriousness deserved regarding BRICS and the very real threat it poses to the dollar.
BRICS originally was comprised of Brazil, Russia, India, China, South Africa – and now, Iran, Egypt, Ethiopia, and the United Arab Emirates are members, as well. BRICS was established to invest in a new currency in an attempt to counter the American dollar or “de-dollarization.”
According to the Council on Foreign Relations, BRICS nations have sought to decrease the superiority of the U.S dollar in global trade for more than a decade. The members’ effort is to expand BRICS’ use trade markets to grow membership – this, despite the hesitancy from Brazil and India toward China and Russia over their desire for more power and control. But BRICS IS posing a threat to the U.S dollar. Senior director, portfolio management, David Krakauer wrote in (Mercer Advisors) that although it seems to be a long way until BRICS currency becomes a threat, it could expand and become large enough to affect the U.S dollar.
Also, Melissa Pistilli wrote in ( Investing News Network ) that BRICS currency has the potential to weaken the U.S dollar as a global reserve currency. But the U.S. Government does not consider BRICS as a threat and downplays the role of the members. White House national security advisor Jake Sullivan believes that because of the differences between the nations members of BRICS, it cannot turn into a real geopolitical contender. And Treasury Secretary Janet Yellen in regard to moving away from the U.S dollar said, “it is a natural desire to diversify.”
Senator Bill Hagerty, R, TN, believes that BRICS effort to reduce the reliance on the U.S dollar will strengthen it as a reserve currency and increase its preeminent and the global demands.
President elect Donald Trump expressed his view toward BRICS with a position defending the U.S dollar, which is not a surprise since from day one he has promised to stand and defend America.
Trump posted on TRUTH and said, “We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U.S. Dollar or, they will face 100% Tariffs.”
All indicators are that Trump will fulfill his promises with attempts to place the U.S back on its feet globally and domestically, and return value and respect to America that was lost during Biden-Harris’ Administration. Reducing the value of the dollar will definitely impact the U.S economy and its power globally. It is less likely to see a gray area in Trump’s policy, which means with transparency he wont just carry out a political maneuver but will proceed straight at the target.
According to ING, the International Settlements’ locational banking statistics showed that material share of the U.S dollar-denominated cross-border lending by core BRICS residents declined from 67% to 55% as of the end of the first quarter of 2016. If BRICS nations fully De-dollarize their financial flows, it will affect the U.S by $2 trillion of the global (ING).
Trump posted on Truth,“…no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America.”
– Serwan Zangana supported Operation Iraqi Freedom as a U.S Army translator before coming to the U.S from Kurdistan, Iraq in 1997 to seek political asylum. He was granted asylum status and years later proudly became a U.S citizen. He currently serves as a correction officer in Roanoke.