Former U.S. President Donald Trump has cautioned the nation of the potential risk of losing its status as the world’s reserve currency. In a post on Truth Social, Trump warned that if this happens, it would be the worst defeat for the country in the past two centuries.
Donald Trump Alerts About the US Dollar’s Place in the Global Economy
Donald Trump, former president of the U.S., noted the recent moves that China and other countries including Russia and Saudi Arabia are making in order to reduce the influence of the dollar in the global economy. In a post on Truth Social, his social media platform, Mr. Trump acknowledged these efforts and said:
China is attempting to replace the U.S. dollar as the world’s top currency. If this happens, and under Biden’s leadership it likely will, this would be the worst defeat for our country in the past two hundred years.
Moreover, Trump stated that if this comes to pass, the U.S. will be relegated to second-rate status. “Unthinkable three years ago,” he added.
Trump’s remarks were made in a speech he gave after his arrest at Mar-a-Lago, in which he strongly criticized the economic policies of President Biden, claiming that the country was ‘going to hell’, and that the economy was “crumbling” with inflation rates being “out of control.” He further addressed the US dollar, saying:
Our currency is in decline and will soon no longer be the world standard which will be our greatest defeat in 200 years; there will be no other defeat like that. That will take us away from being even a major power.
China Making Moves
China and other nations like Russia and India have been making moves to promote the Chinese yuan as an international settlement currency or to encourage the use of national currencies for this purpose. As part of the Xi-Putin meeting on March 22, Putin declared his support for the use of the Chinese yuan to settle payments with emerging economies in Latam, Africa, and other Asian countries.
Additionally, India’s new trading regulations contain a provision for settling international payments in Indian rupees, to assist countries facing a dollar shortage.
BRICS, a bloc which China is part of, is also working on a new currency which will be discussed in the upcoming BRICS summit in August, according to State Duma Deputy Chairman Alexander Babakov.
What do you think of Donald Trump’s warnings about the US dollar’s potential loss of the world reserve status? Share your thoughts in the comments section below.
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