The BRICS alliance has been strongly talking about dumping the US dollar for cross-border transactions and using local currencies. Members like China, India, Brazil, South Africa, and Iran released several statements against the growing influence of the US dollar. These statements were only soundbites, but were never really pushed into policies despite the dissatisfaction against the USD. From Xi Jinping to Narendra Modi and Lula da Silva, none of these leaders officially called to replace the USD.

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Only 1 BRICS Country Officially Endorsed To Dump the US Dollar

Out of the 10 BRICS countries, only Russia officially endorsed replacing the US dollar for all trade and transactions. The Putin administration most probably took the shots as their economy is reeling under the weight of US sanctions. The only way for their economy to fully open up and thrive is to do away with the USD. Even after multiple de-dollarization attempts, Russia has only been briefly successful in the agenda.

The US is also tightening the whip on all countries conducting crude oil transactions with Russia. The Trump administration warned India not to buy oil from Russia or face tariffs. The US President stood by his remarks and slapped 25% tariffs on India on Wednesday along with a penalty for buying Russian oil. This will further squeeze Russia and cause a crack in BRICS to not distance themselves from the US dollar.

Also Read: Trump’s 25% Tariff on India Puts BRICS Unity to the Ultimate Test

The global trade is on a roller-coaster this year, with several countries facing tariffs from the US. Anyone trying to end reliance on the USD or indulge in anti-American policies is facing the heat. While Russia is the only BRICS country that called to replace the US dollar, the others are now thinking twice. The tariff hammer could fall harder, wreaking havoc on their economies that took decades to reach this position.