Former U.S. President Donald Trump has acknowledged the push that China is making to dethrone the dollar as a reserve currency. In a post published on Truth Social, Trump stated that if this comes to happen, it would be the biggest defeat in the history of the U.S. in the last 200 years.
Donald Trump Alerts About China’s Push Against the U.S. Dollar
Donald Trump, former president of the U.S. has recognized the recent moves that China and other countries including Russia and Saudi Arabia are taking to undermine the influence of the dollar in worked markets. In a post published in Truth Social, the social platform founded by Trump, he acknowledged these developments, stating:
China is trying to displace the U.S. dollar as the number one currency throughout 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 stated that if this comes to happen, the U.S. will be reduced to second-tier status. “Unthinkable three years ago,” he added.
Trump’s statements come after he openly criticized the economic policies of President Biden in a speech given after his arrest on Mar-a-Lago. He blasted the performance of the current administration, stating that the country was ‘going to hell,’ and that the economy was “crumbling” with inflation rates being “out of control.”
Trump also referred specifically to the U.S. dollar in its speech, stating:
Our currency is crashing and will soon no longer be the world standard which will be our greatest defeat frankly 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 like Russia and India have been making moves to either support the Chinese yuan as an international settlement currency or to power the use of national currencies for the same purpose. As part of the Xi-Putin meeting on March 22, Putin stated he supported the use of the Chinese yuan to settle payments with emergent economies in Latam, Africa, and other Asian nations.
Also, in its new trading guidelines, India introduced a new option for settling international payments in Indian Rupees to help countries facing a dollar crunch.
BRICS, a bloc in which China is present, is also working in a new currency that will be discussed in the next BRICS summit in August, according to State Duma Deputy Chairman Alexander Babakov.
What do you think about Donald Trump’s statements on China and its moves to substitute the U.S. dollar as world currency? Tell us in the comments section below.