The News
US President-elect Donald Trump threatened to impose 100% tariffs on BRICS countries that move away from the dollar, further raising fears of a multi-front trade war.
Some nations in the bloc — which includes Brazil, Russia, India, China, South Africa, and others — have called for challenging the dollar’s dominance as the world’s reserve currency.
But competing interests among the BRICS countries, as well as the bloc’s diminished role in international banking and debt markets, mean the dollar is not in “immediate danger,” ING analysts said.
China’s yuan is making some inroads abroad, but largely at the expense of other alternate currencies.
Experts also warned that moves to increase the dollar’s dominance run counter to Trump’s other goal of reducing the US’ trade deficit.