The BRICS nations have been exploring the possibility of creating their own alternative reserve currency to reduce their dependence on the US dollar. Such a move would have significant implications for the global financial system, as the US dollar has been the world's dominant reserve currency for decades.
President Trump reportedly told the BRICS leaders that using the US dollar was "in the best interests of all" and that it would help to maintain "global financial stability." He also warned that a shift away from the dollar could lead to "economic turmoil."
The BRICS nations did not immediately commit to Trump's request. Brazilian President Jair Bolsonaro reportedly expressed a willingness to consider the matter but emphasized the importance of "exploring other options" as well.
Economists and financial experts expressed mixed reactions to Trump's demand. Some argued that the US dollar's dominance could be challenged as the global economy evolves and that a more diversified international monetary system might be beneficial. Others warned that a sudden shift away from the dollar could destabilize financial markets and disrupt trade.
The outcome of Trump's request remains unclear. It is possible that the BRICS nations will agree to use the US dollar for the time being, but maintain their efforts to develop an alternative currency in the long term. Alternatively, Trump's demand could further strain relations between the US and the BRICS nations, especially if it is perceived as an attempt to maintain American economic hegemony.