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Kremlin Backs Down on BRICS Currency After Trump’s Threat to Impose 100% Tariffs
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The Kremlin’s long-touted plan to create a unified BRICS currency—promoted since 2022 as a challenge to the dominance of the US dollar—is no longer being pursued, Russian presidential spokesperson Dmitry Peskov confirmed, The Moscow Times reported on January 31.
Peskov made the remarks while responding to US President Donald Trump’s recent threat to impose 100% tariffs on BRICS nations if they abandon the US dollar in trade.
“There have been no efforts to create new financial platforms within BRICS,” Peskov stated, adding that experts should “better explain the BRICS agenda” to Trump.
Russian leader Vladimir Putin first announced plans for an international reserve currency based on a basket of BRICS currencies in June 2022, blaming Western governments for “irresponsible” macroeconomic policies, including excessive money printing and unsustainable debt accumulation.
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Six months later, Russian Foreign Minister Sergey Lavrov reinforced the initiative, insisting that BRICS nations would take the proposal seriously. “Serious, self-respecting countries understand what is at stake,” he claimed.
In October 2024, at the BRICS summit in Kazan, Russia, Putin even showcased a sample banknote for the proposed currency, saying it had been printed by “someone from our side.” However, despite Moscow’s efforts, the Kremlin failed to convince BRICS nations to move forward with the project.
Earlier, Trump warned that BRICS nations would face 100% tariffs if they attempt to replace the US dollar with their own currency.