'Can't eat their cake and have it too': Kanwal Sibal on Donald Trump's de-dollarisation claim against BRICS nations, including India

Former Foreign Secretary Kanwal Sibal recently called out US President Donald Trump for his claims against the BRICS nations, including India. Sibal's tweet came after Trump reiterated his warning of an additional 10% tariff on BRICS nations, including India.

Commenting on the development, Sibal said in a post on X (formerly Twitter): " 'BRICS was set up to degenerate our dollar'- this is not true at all. This was not at all on the agenda when the group was set up. China continued to invest heavily in US securities well after BRICS was formed." 

He further said that the weaponisation of the US control over the global system through the dollar, which is often expressed in the liberal use of sanctions, is something that has rendered other countries vulnerable. 

Why Russia supports de-dollarisation and India doesn't?

Sibal, who has served as India's Ambassador to Russia, said that New Delhi cannot make payments to Moscow in dollars or any other hard currency. He explained: "India, for example, can’t make payments to Russia in dollars or any other hard currency. What is the alternative if the dollar cannot be used? Russia, of course, supports de-dollarisation because it is a victim of dollar sanctions."

He said that India has officially stated on more than one occasion that it does not support de-dollarisation since US is its biggest trading partner. "India, however, supports the use of our national currency in transactions wherever possible. After all, the Europeans, the British and the Japanese use the Euro, the pound and Yen in their economic exchanges with others." 

Sibal's grim warning for Trump administration

At the end of his post, Sibal had a warning for the Trump administration. "US should realise that they can't eat their cake and have it too. If the dollar is weaponised as it is being done, resistance will grow," Sibal signed off. 

Why has Trump slapped 10% tariffs against BRICS nations?

While warning the BRICS nations of additional 10% tariff, Trump said that the grouping was set up to hurt the US, devalue the US dollar and take it off as the standard. 

"They are trying to destroy the dollar so that another country can be the standard. If you have a smart president, you will never lose the standard. If you have a stupid president like the last one, you will lose the standard. And if we lost the world standard dollar, that would be like losing a world war. We can't let that happen," Trump said.

He added that if anybody's going to challenge the US dollar's place, they will have to pay a big price. "I don't think any of them are going to pay that price."