The global de-dollarization movement has taken several strides forward over the last few years. The BRICS bloc of countries has spearheaded the move away from the US dollar. Countries sanctioned by the West, such as Russia, Iran, etc., have especially taken to national currencies for mutual trade.
Although the de-dollarization movement has found its footing among many developing countries, US President-elect Donald Trump may have something to say about the US dollar’s declining strength.
Also Read: XRP on Edge: SEC Appeal Looms as Ripple Countdown Hits Critical Stage
Will Donald Trump Squash The De-Dollarization Movement?
Trump’s entry may help thwart the de-dollarization movement. Last year, Trump said he would put 100% tariffs on countries moving away from the dollar. He stated, “Many countries are leaving the dollar. They not going to leave the dollar with me. I’ll say, you leave the dollar, you’re not doing business with the United States because we’re going to put 100% tariff on your goods.“
Trump’s pro-business stance may lead to stricter rules on countries moving away from the greenback. The US President-elect may take a firm stand against the de-dollarization movement after his inauguration on Jan. 20, 2025.
Also Read: Top 3 Cryptocurrencies To Buy During The Current Market Dip
Can Trump Bring The Dollar Back?
While Trump’s motive to squash the de-dollarization movement may be met with applause, a 100% tariff may not answer the question. If the US imposes a 100% tariff on, for example, China, inflation may soar to new heights.
Another factor pushing the de-dollarization movement is Western sanctions. Countries like Iran and Russia are finding it increasingly difficult to trade using the US dollar. Sanctions have further reduced the use of the greenback in international trade. Resolving the underlying issues and reinstating the dollar for sanctioned countries could help thwart the de-dollarization sentiment.
Also Read: Bitcoin Bull Pennant: Analyst Predicts $140,000 Target After Breakout
How the Trump administration deals with the anti-USD movement is yet to be seen.
