Brazilian Ambassador Rejects Idea of BRICS Single Currency, Prioritizes Local Currencies and Payment Systems
As emerging economies increasingly push to reduce their dependence on the US dollar, discussions around the possibility of a single currency for the BRICS (Brazil, Russia, India, China and South Africa) bloc have been gaining traction in the global financial world. However, a new statement from Brazil’s Ambassador to India, Kenneth Felix Haczynski da Nobrega, has clarified the bloc’s position: BRICS has no plans to introduce a common currency in the near future.
BRICS Has No Plans for Common Currency at 2025 Summit
Speaking in an interview with The Hindu on July 5, Ambassador Nobrega asserted that the 2025 BRICS summit, scheduled to be held in Rio de Janeiro, will not come up with any concrete plans regarding the issuance of a BRICS currency. Instead, the focus of the summit will be on promoting the use of national currencies in intra-bloc trade, based on the principle of voluntariness among member states.
The idea of a common currency is currently “non-existent” and “not envisaged” in the current context, according to Nobrega. He stressed that the top priority is to build trust and facilitate cross-border payments and transactions by BRICS businesses in their own currencies.
Boosting Local Currency Trades, Avoiding Dollar Dependence
The BRICS strategy reflects a broader trend of currency diversification efforts in the Global South. Moving from a dollar-based trading system to local currency trade is seen as an important step to increase financial autonomy and reduce risks from global economic volatility or financial sanctions.
Brazil, as the host of the 2025 summit, is a strong advocate of expanding opportunities for businesses in the bloc to settle in local currencies. The experience of MERCOSUR the South American common trade area is cited as a successful model, where the use of local currencies has been consistently applied for more than two decades.
Internal Differences Make a Common Currency Unlikely
While the idea of a BRICS currency has been discussed as an alternative to the dollar for global transactions, deep differences in economic structures and monetary policies among members have made this prospect unlikely. Russia and China have shown great interest in the initiative, seeing it as a tool to overcome Western financial barriers. Meanwhile, countries such as India and South Africa remain skeptical, concerned about the issue of monetary policy control and economic disparities.
Instead of pursuing a risky single currency, the bloc is shifting to building localized payment systems, using new technology and financial infrastructure to ensure efficient transactions without radically changing the current monetary structure.
BRICS 2025 Summit to Expand
The 2025 BRICS summit in Rio de Janeiro is expected to include recently joined members Egypt, Ethiopia, Iran, the UAE and Indonesia. Indian Prime Minister Narendra Modi has confirmed his attendance, while the leaders of Russia and China are expected to be absent.
With the addition of new countries, BRICS is evolving into a broader bloc of influence, encompassing many dynamic economic regions. However, this also increases the challenge of reaching a common consensus on bloc-wide fiscal and monetary policies.
Conclusion: Local Currencies and New Payment Systems Are the Real Priority
In the context of global economic and geopolitical fluctuations, BRICS is choosing a more realistic path: increasing the use of local currencies in intra-bloc transactions and building flexible payment mechanisms that suit local needs, instead of risking a common currency that does not have a solid foundation.
While the possibility of a BRICS currency in the distant future cannot be ruled out, at the present time, prioritizing feasible solutions and gradually reducing the dominant role of the dollar is considered a more suitable and sustainable strategy for a multipolar financial order in the 21st century.