BACKGROUND
Donald Trump, the newly elected U.S. President, has warned the BRICS group of emerging economies not to introduce a new currency to replace the U.S. dollar.
Trump said that if BRICS countries try to bring in their own currency or support an alternative to the dollar, the U.S. will impose a 100% tax on them. He added that there is no chance for any currency to replace the U.S. dollar in the global economy. He also stated that BRICS countries supporting an alternative currency will have no place in the U.S. economy.
Reports suggest that BRICS is considering a plan to trade in their own currencies instead of the dollar.
BRICS includes Brazil, Russia, India, China, and South Africa. This year, the UAE, Iran, Egypt, and Ethiopia joined the group.
