Over the weekend, President-elect Donald Trump threatened a 100% import tariff on the BRICS countries unless they pledge not to create their own currency. In this note from 2023, we outlined the significant practical challenges that these countries would face in getting a BRICS currency off the ground and we argued that it wouldn't in any case solve any of the challenges they would face in trying to move away from the dollar. Whether or not the BRICS make an explicit pledge, a BRICS currency is not a viable challenger to the dollar.
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