US pushing countries to seek dollar alternatives: Think tank

US President Donald Trump has proposed a 10 per cent tariff on all BRICS nations for conducting trade in non-dollar currencies, overlooking that such moves were prompted by Washington’s own economic and geopolitical actions, economic think tank GTRI said on Friday.

The Global Trade Research Initiative (GTRI) said the US sanctions and SWIFT bans on Russia, Iran and Venezuela have blocked dollar-based payments, forcing nations India and China to trade in local currencies with Russia. SWIFT is a global messaging system that routes payment instructions between banks worldwide.

GTRI Founder Ajay Srivastava said, “Over 90 per cent of Russia-China trade is now settled in rubles or yuan; India pays for Russian oil in rupees and dirhams; even Saudi Arabia is open to non-dollar oil trade.”

He added US’ 10 per cent tariff plan on BRICS and 500 per cent penalty on countries buying Russian oil makes it difficult for countries to negotiate trade deals with the US.