Amid BRICS’ ongoing move to weaken the currency, Donald Trump has admitted that United States sanctions are hurting the dollar. During a recent appearance, the former president noted that he would lift all sanctions on Russia and Iran if he were to win reelection in November.
The weaponization of the greenback has driven mass de-dollarization over the last several years. They have primarily been driven by the BRICS bloc. Since 2022, Western sanctions have driven Moscow to seek increased trade in local currencies. With the economic alliance seeking to institute its own payment system, lifting those sanctions would certainly provide an interesting development.
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Donald Trump Blames US Sanctions on Weakened Dollar
For the last several years, the BRICS bloc has firmly embraced de-dollarization. Although the US currency is still the primary global reserve asset, its position atop global finance has certainly been threatened. According to the Atlantic Council’s Dollar Dominance Meter, the global share of the greenback as a global reserve asset has fallen to 58% in 2024.
Now, Donald Trump has placed the blame on the asset’s weaponization. Amid the BRICS challenge of the currency, the former United States president says sanctions are hurting the US dollar’s value. Moreover, Trump vows to lift sanctions if he is once again voted into the Oval Office.
Source: CNN
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When speaking of sanctions, Trump said they “ultimately kill your dollar and kill everything your dollar represents.” Additionally, he noted the necessity to ensure the dollar’s status. “We have to continue to have that be the world currency, I think it’s important.”
“If we lost the dollar as the world’s currency, I think that would be the equivalent of losing a war.” Although he noted sanctions are necessary for “countries that deserve it,” they can’t be maintained. Altogether, he reiterated the importance of not allowing countries like Iran, China, and Russia to stop using the dollar as a key global asset.