JOHANNESBURG – South Africa’s government firmly rejected claims of BRICS planning an alternative currency to the US dollar, responding to former President Donald Trump’s threat to impose 100% tariffs on bloc members supporting such an initiative.
“Recent misreporting has led to the incorrect narrative that BRICS is planning to create a new currency,” South Africa’s Department of International Relations and Cooperation (Dirco) said in a statement Monday.
The clarification came after Trump posted on Truth Social: “We require a commitment… that they will neither create a new BRICS Currency, nor back any other Currency to replace the mighty US Dollar or, they will face 100 percent Tariffs.”
Dirco emphasized that BRICS discussions focus on enabling trade between member countries using their existing national currencies, rather than creating a new unified currency.
The bloc’s New Development Bank has invested over $30 billion in member states and developing economies, continuing to conduct operations in US dollars.
“South Africa supports the increased use of national currencies in international trade and financial transactions to mitigate the impact of foreign exchange fluctuations, rather than focusing on de-dollarisation,” Dirco stated.
Financial markets responded to the developments, with the South African rand weakening 0.4% to R18.1283 against the dollar by 10:20 GMT+2 Monday in Johannesburg, following broader emerging market currency trends.
BRICS, which expanded in 2024 to include Iran, Egypt, Ethiopia, and the United Arab Emirates alongside founding members Brazil, Russia, India, China, and South Africa, has advocated for international financial system reforms while maintaining the dollar’s role in global trade.
The bloc aims to strengthen correspondent banking networks and develop infrastructure for settlements in national currencies, maintaining its focus on practical financial cooperation rather than currency replacement.
