South Africa has firmly denied reports that the BRICS bloc is planning to establish a new unified currency. The clarification comes after US President-elect Donald Trump warned of imposing 100% tariffs on members of the economic group backing the creation of an alternative to the US dollar.
The Department of International Relations and Cooperation (Dirco) issued a statement rejecting the claims, stating that recent media reports had misrepresented the discussions within the bloc. “BRICS is not planning to create a new currency,” Dirco emphasized. “The ongoing talks within BRICS focus on facilitating trade among member countries using their own national currencies.”
The announcement comes as South Africa’s currency, the rand, experienced a slight decline of 0.4%, falling to 18.1283 against the US dollar by mid-morning in Johannesburg. The currency weakness mirrored the broader trend in emerging markets, with many currencies affected by the renewed strength of the dollar.
While the BRICS group—which includes Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates—has long called for reforms to the international financial system, there has been no agreement on the adoption of a new currency. The BRICS New Development Bank, established to support infrastructure projects across the group’s member states, continues to rely on the US dollar for its investments, which have surpassed $30 billion.
Dirco reiterated South Africa’s support for increasing the use of national currencies in global trade and financial transactions to mitigate the impact of foreign exchange fluctuations. Rather than focusing on de-dollarisation, the department emphasized the need to strengthen correspondent banking networks and build infrastructure for settling transactions in national currencies, which it views as a more effective long-term strategy.
The statement reflects South Africa’s broader approach to international economic relations, prioritizing stability and cooperation over the potential disruption of a shared currency.