BRICS: Why Doesn't Trump Prevent the Alliance from Abandoning the US Dollar

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Despite a growing sense that the BRICS bloc has shifted its focus in the context of the outcome of the 2024 presidential alliance, many experts believe that the return of Donald Trump will not deter the alliance from abandoning the US dollar. Specifically, the newfound concern of this group for trading in local currencies will not be reversed despite changes in leadership in the United States. Earlier this month, Russian President Vladimir Putin hinted that the days of the dollarization of the union are over. However, according to economist Lauren Johnson, who has recently discussed the political and financial significance of this activity, it is unlikely to happen. Moreover, why it is unlikely to end in the near future. Experts say that BRICS' commitment to local currency transactions will not stop when Trump returns. Over the past two years, dollarization has been a clear focus of the BRICS bloc. In the context of Western sanctions imposed on Russia, the group has been forced to find new ways to sustain its economic viability. A weaponized US dollar has compelled global South countries to integrate into a global shift, and the process has been quite successful. However, everything is expected to change with the upcoming presidential change in the United States. Donald Trump has spoken about the importance of the dominance of the greenback. Therefore, he is likely to follow the previous reasoning that he will lift the sanctions to ensure the use of the dollar. Although that has led many to reconsider their view of the BRICS alliance, an economist believes Trump's return will not deter the bloc from abandoning the US dollar. Specifically, renowned economist Lauren Johnston has discussed the increasing need to promote local currencies. "There are economic and political reasons to use local currencies," Johnston said in a recent interview. "Using local currencies to trade between countries will reduce transaction costs and reduce the dependence of these countries on foreign currencies." Overall, Johnson believes that strengthening the economic capabilities of the group is more important than any cooperation that can be found with Trump's US." Over the past two years, there have been discussions about a common payment system for the BRICS group. However, the project has not made any progress. Currently, these projects are still only developments that may eventually become a reality. Until they do, the world should expect this group to continue to maintain the pace of local currency transactions. At the end of the day, this can greatly benefit the group's standing on the international stage.

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