Threat issued by Trump: Potential economic penalties towards BRICS nations for endeavoring to establish a new currency

In a significant development, the trade group BRICS has expanded to BRICS+, with Egypt, Ethiopia, Iran, and the UAE joining the original members Brazil, Russia, India, China, and South Africa. This expansion, which was formalized this year, aims to strengthen economic ties among the nations.

However, the proposed creation of a common currency by BRICS+ could potentially lead to sanctions from the United States. In 2016, during the Trump administration, the President-elect threatened BRICS countries with 100% sanctions if they attempt to dislodge the dollar by creating a new currency or implementing another alternative. This threat still looms large, given the current political climate.

The formation of a new currency by BRICS+ could be particularly problematic due to the inclusion of two sanctioned countries: Russia and Iran. Both countries have been under sanctions due to their respective political situations.

Interestingly, Russia, a founding member of BRICS, had proposed a common BRICS currency before it invaded Ukraine. However, the official proposal does not have a publicly specified name, and the plan for a unified BRICS currency to rival the US dollar remains dormant and was not formalized under a specific currency name.

Despite the challenges, many professionals are choosing deeper insights over surface level news, seeking to understand the implications of this potential currency shift for global economics. The Russian central bank, for one, acknowledges the difficulty in achieving a common BRICS currency.

It's important to note that BRICS was originally founded as a trade group, and the idea of a common currency was not initially part of its mission. The original BRICS did not include Iran, but it has since become a member of BRICS+.

The expansion of BRICS to BRICS+ was achieved through the expansion of the original BRICS trade group. This move is expected to strengthen economic cooperation among the nations and potentially reshape the global economic landscape.

As the situation evolves, it will be interesting to see how the BRICS+ nations navigate the challenges posed by the potential creation of a new currency and the threat of sanctions from the United States.