Despite several warnings from Trump, some of the BRICS countries continue to turn a deaf ear to their plans to abandon the dollar in their operations, especially in trade.
After much discussion, India and Indonesia on Monday officially moved to abandon the US currency and use their own currencies for cross-border transactions.
The two countries have issued a joint statement, expressing confidence that trading in local currencies will improve economic ties and strengthen their respective GDP growth.
What is Trump’s reaction?
Through a new post on the US President’s Truth Media, Donald Trump has issued a stern warning stating that he will impose tariffs of up to 100% on countries that reject the use of the dollar in international trade.
Amidst this chaos, Malaysia is still taking the ‘play safe’ approach by being a loyal spectator of this global drama.
Minister of Investment, Trade and Industry, Tengku Zafrul Aziz, stressed that the impact of the BRICS abandoning the US dollar is still small because most global trade still depends on the currency.
He also reminded that Malaysia is not a full member of BRICS, just a trading partner.
However, with the threat of US tariffs becoming more real, can Malaysia continue to play both sides of the fence without provoking Washington's wrath?
