BRICS Currency Doubts: South African Minister Questions Feasibility

The optics of the ongoing BRICS Summit in South Africa are signalling delays on whether the bloc can actually launch an alternative common currency to rival the US dollar. Despite ongoing discussions about de-dollarization and reducing reliance on the American currency, significant hurdles remain.

While officials have repeatedly denied the idea that a ‘BRICS currency’ is imminent, discussions on how to better facilitate trade between BRICS nations and decrease dependence on the US dollar are undoubtedly taking place. However, not all members are convinced of the immediate practicality of a shared currency.

In a preview of its hosting the 2025 BRICS Summit, the South African Minister of Foreign Affairs bemoaned the fact that BRICS countries were so dependent on the US dollar. However, the Minister also expressed skepticism about the short-term viability of a BRICS currency, citing significant economic and logistical challenges.

South Africa’s government said there are no plans to create a so-called Brics currency, after US President-elect Donald Trump threatened to impose 100% tariffs on goods. This illustrates the complex geopolitical landscape within which the BRICS nations operate and the pressure they face.

The BRICS group of nations will discuss the feasibility of introducing a common currency, according to the foreign minister of South Africa, which is preparing to host the summit. While the possibility remains a topic of conversation, the South African Minister's doubts highlight the long road ahead.

A new global economic order will not emerge out of a new BRICS currency or de-dollarization happening overnight. But it can potentially emerge out of BRICS’ concerted efforts to reshape international finance. The practical steps towards this goal are being intensely debated, with differing opinions on the best path forward.