Former US President Donald Trump has acknowledged China’s push to dethrone the dollar as its reserve currency. In a post published on Truth Social, Trump claimed that if this were to happen, it would be the biggest defeat in US history in the last 200 years.
Donald Trump warns about China’s push against the US dollar
Former US President Donald Trump has acknowledged recent moves being taken by China and other countries, including Russia and Saudi Arabia, to undermine the dollar’s influence in labor markets. In a post published on Truth Social, the social platform founded by Trump, admitted these developments, stating:
China is trying to displace the US dollar as the number one currency in the world. If this happens, and under Biden’s leadership it probably will, this would be the biggest defeat for our country in its history.
Furthermore, Trump claimed that if this were to happen, the US would be reduced to a second tier state. “Unthinkable three years ago,” he added.
Trump’s remarks come after he openly criticized President Biden’s economic policies in a speech given after his arrest at Mar-a-Lago. He criticized the performance of the current administration, stating that the country was “going to hell” and that the economy was “falling apart” with inflation rates “out of control”.
Trump also specifically referred to the US dollar in his speech, stating:
Our currency is collapsing and will soon cease to be the world standard, which will frankly be our biggest defeat in 200 years; there will be no defeat like that. That will take us away from being even a great power.
china making moves
China and other nations such as Russia and India have been taking steps to support the Chinese yuan as an international settlement currency or to encourage the use of national currencies for the same purpose. As part of the Xi-Putin meeting on March 22, Putin stated that he supported the use of the Chinese yuan to settle payments with emerging economies in Latin America, Africa and other Asian nations.
Also, in its new trade guidelines, India introduced a new option to settle international payments in Indian rupees to help countries facing a dollar crisis.
The BRICS, a bloc that includes China, are also working on a new currency that will be discussed at the next BRICS summit in August, according to State Duma Vice President Alexander Babakov.
What do you think of Donald Trump’s statements on China and his moves to replace the US dollar as the world currency? Tell us in the comment section below.
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