De-dollarization: No BRICS plans, says Kremlin; “empty threat,” says Tharoor

Virendra Pandit

New Delhi: The Kremlin on Friday dismissed US President Donald Trump’s threats to impose a 100 percent tariff on the countries supporting a ‘de-dollarization’ move, and said the BRICS group never planned a common currency.

BRICS discussions revolve around investment cooperation, not currency creation, the Kremlin said, countering Trump’s repeated tariff warnings, according to the media reports.

Kremlin spokesman Peskov rebuffed President Trump’s warning, clarifying BRICS prioritizes mutual investments, not replacing the US dollar as a reserve currency.

President Trump on Thursday warned off BRICS member countries from replacing the US dollar as a reserve currency by repeating a 100 percent tariffs threat he had made weeks after winning the November 2024 presidential elections.

Peskov said BRICS, of which Russia is a member, was not talking about setting up its own currency, but merely about creating joint investment platforms.

“This is not the first time Trump has made such statements, it’s not new. There have been statements like this before, back when he was just President-elect,” Peskov told reporters.

“The point is that BRICS is not talking about creating a common currency, nor has it ever done so. BRICS is talking about creating new joint investment platforms that would allow joint investments in third countries, mutual investments, and so on,” he said.

“In all likelihood, US experts probably need to explain the BRICS agenda in more detail to Mr Trump,” he remarked.

The Kremlin in December said that any US attempt to compel countries to use the dollar would backfire after Trump made the same threat against BRICS.

The BRIC grouping does not have a common currency, but long-running discussions on doing more business in national currencies have gained momentum after the West imposed sanctions on Russia over the war in Ukraine.

In India, former diplomat and Congress lawmaker Shashi Tharoor, responding to Trump’s 100 percent tariff warning, dismissed it as an “empty threat,” noting that no significant plan exists. India opposes moving away from the dollar, emphasizing its practicality in international trade.

“I don’t think there is any particular plan whatsoever to do that. And therefore, the threat of the US President seems a bit empty because it’s only if there is an actual proposal that comes up that countries like India are taking forward seriously. I don’t see any support in the Indian government for such a proposal. So, until that happens, why should we worry,” he said.

Tharoor noted that there had been “some discussion” on the issue with localized examples — such as Rupee-Ruble trade with Russia or Rupee-Riyal trade with Iran.

The Congress lawmaker also said that the dollar remained a “practical convenience” for most countries.

BRICS is an intergovernmental organization comprising 10 countries including India. The other member nations are Russia, China, South Africa, Egypt, Ethiopia, Indonesia, Iran and the United Arab Emirates. Trump has repeatedly threatened to impose tariffs against the grouping and warned against de-dollarisation.

Recent years have seen some of the member nations — in particular, Russia and China — seeking an alternative to the US dollar or a new BRICS currency. India remains against the move with External Affairs Minister S Jaishankar reiterating in December 2024 that there was no such proposal.

“The idea that the BRICS countries are trying to move away from the US dollar, while we stand by and watch, is OVER. We are going to require a commitment from these seemingly hostile Countries that they will neither create a new BRICS currency, nor back any other currency to replace the mighty US dollar or, they will face 100 percent Tariffs, and should expect to say goodbye to selling into the wonderful US Economy. They can go find another sucker Nation,” Trump insisted in a social media post.

The strongly worded remarks were made through his Truth Social platform. He also assured that there was “no chance that BRICS will replace the US Dollar in International Trade”. Any country that tried such a move, he insisted, would soon find itself “saying hello to Tariffs, and goodbye to America!”