How much loss will America suffer due to currency of BRICS countries?
The value of the dollar may fall due to low demand, which may increase instability in the American financial markets. Apart from this, the weakness of the dollar will make imports expensive, which will increase America's trade deficit. At the same time, America, which repeatedly uses the dollar to impose economic sanctions, if the grip of the dollar weakens, the effect of American sanctions will also be reduced.
Apart from this, according to a BBC report, trade transactions, international payments, loans, imports and exports around the world are done in US dollars only. Talking about global currency reserves, the share of the dollar in it is 59 percent. Whereas, 64 percent of the world's total debt is transacted in dollars only. At the same time, the dollar also has a large share of about 58 percent in international transactions. The dollar also dominates in foreign payments. Its share here is 88 percent. In such a situation, if the BRICS countries bring their currency as an alternative to the dollar, then its direct effect will be seen on America and its currency dollar. This is the reason why America is afraid of this initiative of BRICS countries.
BRICS countries have their own currency
The currency of BRICS countries, which donald trump is worried about as an alternative to the dollar, was discussed in the BRICS summit held in south africa in august 2023. In this summit, a proposal was made to create a common currency for mutual trade and investment among the BRICS countries. In the summit of BRICS countries held in october this year too, russia had strongly lobbied for this proposal.