American Donald Trump has been sharing various views since his victory in the presidential elections. In this series, Donald Trump threatened the BRICS countries that if they support any other currency instead of the dollar, America will impose 100 percent tariff on them. Research institute GTRI has said on Sunday that it is unrealistic for Donald Trump to make such a threat. GTRI expressed its view that India should focus on developing a viable local currency trading system. BRICS, formed in 2009, is the only major international grouping in which America is not included. This group includes South Africa, Iran, Egypt, Ethiopia and United Arab Emirates (UAE).
BRICS countries are looking for dollar option
In the last few years, some of its member countries, especially Russia and China, have been exploring alternatives to the US dollar or creating their own BRICS currency. India has not been part of this move yet. On Saturday, Trump warned the BRICS countries against such a move. The Global Trade Research Initiative (GTRI) said tariffs on this scale would only harm US consumers because it would raise import prices, adversely affect global trade and risk retaliation from major trading partners.
Trump's threat is not real
Ajay Srivastava, founder of GTRI, said, “Trump's threat to impose 100 percent tariffs on countries adopting the BRICS currency is not realistic and is more symbolic than practical. For India, the prudent approach is to focus on making local currency trading practical by establishing a transparent and open currency exchange.” He said India's best interest lies neither in US dollar dominance nor in full adoption of the BRICS currency at this time. “By enhancing its own financial infrastructure, India can better navigate the changing dynamics of global trade,” he said.
Bullying will weaken diplomatic relations
Ajay Srivastava said that threatening sovereign countries weakens diplomatic relations and disregards the multipolar nature of today's world. He said that no country, including America, can decide global economic policies unilaterally without facing any consequences. “Countries have the right to make decisions in their best interests, especially when existing systems are used against them,” he said.
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