The Indian Stock Market is Falling Down For multiple reasons, Like,

DOLAND TRUMP'S TO THREAT TO BRICS

President-elect Donald Trump has recently issued a stern warning to the BRICS nations—Brazil, Russia, India, China, South Africa, Egypt, Ethiopia, Iran, and the United Arab Emirates—threatening to impose 100% tariffs if they pursue the creation or endorsement of a currency intended to rival the U.S. dollar's dominance in global trade.

Background on BRICS and Currency Discussions

The BRICS alliance, originally comprising Brazil, Russia, India, China, and South Africa, was established in 2009 to represent the interests of emerging economies and reduce dependence on the U.S. dollar, which is the predominant currency in international commerce. Recently, there have been discussions within the group about developing an alternative currency to challenge the dollar's supremacy. For instance, Russian President Vladimir Putin has advocated for a new international payment system, expressing concerns over the dollar being used as a geopolitical tool.

Trump's Position and Rationale

Trump's threat is a response to these potential moves, aiming to deter any actions that might undermine the dollar's status as the world's primary reserve currency. He stated that any country attempting to create or support a new currency to replace the U.S. dollar would face severe economic consequences, including the imposition of 100% tariffs on their exports to the United States.

*Potential Economic Implications

Moreover, some experts caution that coercive measures might backfire by accelerating global efforts to find alternatives to the dollar, thereby undermining its long-term dominance. Brad Setser, a senior fellow at the Council on Foreign Relations, noted that attempting to force countries to use the dollar could be counterproductive, making the use of the dollar appear as a favor to the U.S. rather than a choice based on economic fundamentals.

Feasibility of a Unified BRICS Currency

The practicality of a unified BRICS currency faces significant challenges. The economic disparities and political differences among member nations pose substantial obstacles to creating a viable alternative to the dollar. Additionally, the dollar's entrenched role in global finance, representing roughly 58% of the world's foreign exchange reserves, makes it difficult for any new currency to gain comparable traction in the short to intermediate term.