The post Trump threatens BRICS nations with 100% tariffs if they try to replace US Dollar appeared on BitcoinEthereumNews.com.

US President-elect Donald Trump wrote on his social media platform, Truth Social, on Saturday, demanding the BRICS countries use the US Dollar (USD) as their reserve currency and threatened to impose a 100% tariff if they supported another currency to replace the USD, per BBC.  The statement comes as Trump steps up his tariff threats after he announced plans to impose a 25% tariff on Mexico and Canada and an extra 10% tariff on China over illegal migration and drug trafficking into the United States.  Market reaction At the time of writing, the US Dollar Index (DXY) is trading around 106.10, up 0.35% on the day.  US Dollar FAQs The US Dollar (USD) is the official currency of the United States of America, and the ‘de facto’ currency of a significant number of other countries where it is found in circulation alongside local notes. It is the most heavily traded currency in the world, accounting for over 88% of all global foreign exchange turnover, or an average of $6.6 trillion in transactions per day, according to data from 2022. Following the second world war, the USD took over from the British Pound as the world’s reserve currency. For most of its history, the US Dollar was backed by Gold, until the Bretton Woods Agreement in 1971 when the Gold Standard went away. The most important single factor impacting on the value of the US Dollar is monetary policy, which is shaped by the Federal Reserve (Fed). The Fed has two mandates: to achieve price stability (control inflation) and foster full employment. Its primary tool to achieve these two goals is by adjusting interest rates. When prices are rising too quickly and inflation is above the Fed’s 2% target, the Fed will raise rates, which helps the USD value. When inflation falls…

---

Filed under: News - @ December 2, 2024 12:54 am