Trump considers measures against countries abandoning the Dollar

Trump considers measures against countries abandoning the Dollar

Shafaq News/ Advisors to former US president Donald Trump are contemplating measures against countries that want to abandon the US dollar.

According to Bloomberg, Trump's economic advisors evaluate potential actions if he wins the upcoming presidential elections. These actions are intended to address major emerging markets seeking to diminish their dependence on the Dollar.

Discussions are ongoing regarding various measures, including the possibility of imposing sanctions on allies or adversaries actively engaging in bilateral trade using currencies other than the Dollar. Considering options include export controls, allegations of currency manipulation, and tariffs.

The global pushback against the Dollar's dominance in the financial system gained significant momentum in 2022, notably when the United States spearheaded efforts to impose severe economic sanctions on Russia, a G20 member. This included restrictions on the access of the Russian central bank, government officials, and approximately 2,500 other entities to the Dollar, a development that informs the current global economic landscape.

Moving away from the Dollar was also discussed at the BRICS summit in August last year, which included Brazil, Russia, India, China, and South Africa. The coalition gained significance following calls from major oil-producing nations such as Saudi Arabia and the United Arab Emirates, along with other countries, for a broader shift this year.

Bloomberg reports that Trump's team has specifically addressed actions related to BRICS, particularly in the context of a potential second term.

Trump has frequently emphasized his unwavering commitment to the Dollar remaining the world's reserve currency and has pledged to prevent countries from abandoning it, a reassurance of the currency's stability.

These developments followed US President Joe Biden's signing legislation granting the administration authority to seize Russian assets in dollars and allocate them to aid Ukraine, which raised concerns among many Republicans who fear it could weaken the US dollar's role in the global financial system.

In a CNBC interview on March 11th, Trump remarked, "I will not permit countries to forsake the dollar because losing this standard would be akin to losing a revolutionary war, a detriment to our nation." Criticizing Biden's policies and warning of potential consequences for the Dollar's status as a standard.

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