Putin responds to Donald Trump's threats for those who dare to abandon US dollar

During the plenary session of the VTB investment forum "Russia Calling!" Russian President Vladimir Putin responded to Donald Trump's recent post, in which he threatened to impose sanctions against the countries that decided to not to use the US dollar in their settlements. The US President-elect wrote that he would introduce 100-percent duties on BRICS countries (Brazil, Russia, India, China, South Africa).

Photo: Kandinsky

US dollar

"We require a commitment from these Countries that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty U. S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U. S. Economy. They can go find another "sucker!” There is no chance that the BRICS will replace the U. S. Dollar in International Trade, and any Country that tries should wave goodbye to America," Donald Trump wrote on Truth Social platform.

Moscow has never refused to use the US dollar — it was Washington that banned the use of the US dollar in Russia.

Donald Trump was away from the White House for four years, and both global and US economies saw many changes during that time, Putin noted.

"His successors, his political opponents have done a lot to undermine the fundamental foundations of the dollar as a global reserve currency," Putin said adding that the dollar is now largely used to harm other countries.

Russia does not abandon the dollar

Moscow has never abandoned the dollar — it was Washington that prohibited the use of the US currency in the Russian Federation.

"You know, they say that you get what you fight for. They get the problems of the dollar itself," he said. In addition, there is a difference between banning and not using the dollar, Vladimir Putin said adding that Trump spoke about the consequences of banning the use of the US currency.

Putin said in early November that it was too early to talk about the creation of a joint currency for the BRICS association. One needs to achieve greater integration of economies first, he said.

"As for us in Russia, we are not abandoning the dollar, nor did we ever intend to. We have simply been denied the use of the dollar as a payment method. It was the United States that introduced the restrictions," he then said.

Details

The United States dollar (symbol: $; currency code: USD; also abbreviated US$ to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it into 100 cents, and authorized the minting of coins denominated in dollars and cents. U.S. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color. The U.S. dollar was originally defined under a bimetallic standard of 371.25 grains (24.057 g) (0.7734375 troy ounces) fine silver or, from 1834, 23.22 grains (1.505 g) fine gold, or $20.67 per troy ounce. The Gold Standard Act of 1900 linked the dollar solely to gold. From 1934, its equivalence to gold was revised to $35 per troy ounce. In 1971 all links to gold were repealed. The U.S. dollar became an important international reserve currency after the First World War, and displaced the pound sterling as the world's primary reserve currency by the Bretton Woods Agreement towards the end of the Second World War. The dollar is the most widely used currency in international transactions, and a free-floating currency. It is also the official currency in several countries and the de facto currency in many others, with Federal Reserve Notes (and, in a few cases, U.S. coins) used in circulation.