For the last several months, the BRICS economic alliance has drawn the ire of the United States due to its plan to create a common currency. Indeed, newly elected president Donald Trump has threatened 100% tariffs on nations within the bloc that are seeking to ditch the US dollar.
However, recent months have seen the bloc speak up about the plan and its place in the group’s operations. Those statements have started to place doubt on whether the initiative is even moving forward with the collective. So, is the BRICS Common Currency Plan officially over? Here’s what the alliance has said.
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BRICS Speaks on Common Currency Plan: Is It Moving Forward?
For much of the last two years, the BRICS alliance has sought to engage in widespread de-dollarization efforts. With increased sanctions coming from the West, the bloc has sought to lessen its reliance on the currency and promote its own local alternatives within trade. Specifically, this took place through the creation of their own BRICS Pay system that has made major strides since 2024.
Somewhere along the line, the alliance discussed the creation of its own currency to rival the dollar. That seemed to be the final straw, as it drove increased opposition from the West. With 100% tariff threats being shared, the BRICS common currency plan may have been ceased by the bloc. At least, that is how it seems based on recent statements.
Firstly, officials from South Africa quickly dispelled rumors of an imminent BRICS currency. They noted, according to a recent report, that their focus remained on increasing trade with local currencies. Additionally, they noted that such action only increased the financial stability of the alliance itself.
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Finance Minister Enoch Godongwana emphasized that back in September, he noted that the bloc has yet to decide on the implementation of a digital currency that would be created under the umbrella of the BRICS alliance. However, the Department of International Relations and Cooperation clarified the purpose of this was not “de-dollarization.” Instead, on strengthening banking network and alliance infrastructure
Finally, India has also spoken out about the process. Reserve Bank of India Governor Shaktikanta Das noted that the currency plan remained nothing more than an idea presented by a single member.
“BRICS Currency was an idea raised by one of the members and was discussed, but no decision has been made,” Das noted. It is likely Russia was behind the idea. The pressure of ongoing sanctions has had Moscow leading the bloc’s de-dollarization charge for much of the last year.
