Donald Trump recently voiced his concerns about U.S. sanctions, stating they are harming the dollar’s global strength. During a recent appearance, the former president mentioned that if re-elected, he would lift all sanctions on Russia and Iran. This comes amid BRICS’ ongoing efforts to challenge the dollar’s dominance.
BRICS Pushes for De-Dollarization
Over the past few years, the BRICS bloc—comprising Brazil, Russia, India, China, and South Africa—has actively worked to reduce reliance on the U.S. dollar. As part of this strategy, member nations have increasingly turned to local currencies for trade, especially since 2022. Moscow, in particular, has sought alternatives after Western sanctions limited its access to the dollar. The economic alliance is even developing its own payment system, further diminishing the need for the U.S. currency.
Although the U.S. dollar remains the world’s leading reserve currency, its dominance is slipping. The Atlantic Council’s Dollar Dominance Meter reveals that the greenback’s share as a global reserve asset has dropped to 58% in 2024.
Trump’s Take on U.S. Sanctions and the Dollar’s Decline
Trump attributes much of the dollar’s weakening to the U.S.’s use of sanctions as a financial weapon. He argues that these sanctions are hurting the currency’s value and undermining its global standing. “Sanctions ultimately kill your dollar and everything it represents,” Trump said, warning about the long-term impact of maintaining such measures.
He emphasized the importance of protecting the dollar’s status as the world’s reserve currency. “If we lost the dollar as the world’s currency, that would be like losing a war,” Trump said. While he acknowledged that sanctions could be necessary for some nations, he argued that the U.S. cannot afford to drive countries like Iran, China, and Russia away from using the dollar in global trade.
Potential Shift in U.S. Foreign Policy?
If Trump were to win re-election, his plan to lift sanctions on Russia and Iran could drastically alter U.S. foreign policy. This move might ease tensions with those nations, but it could also have significant economic and geopolitical ramifications. As BRICS continues to build momentum toward de-dollarization, the future of the dollar’s dominance remains uncertain.
