Brazil’s BRICS presidency this year will not push for a common currency among member nations but will instead focus on reducing dependence on the U.S. dollar in global trade.
This agenda could provoke opposition from U.S. President Donald Trump, who has twice warned BRICS against challenging the dominance of the “mighty U.S. dollar.” Last month, Trump stated on social media, “There is no chance that BRICS will replace the U.S. Dollar in international trade, and any country that tries should say hello to tariffs!”
Brazilian officials clarified that the idea of a shared BRICS currency was never formally discussed at a technical level. Instead, Brazil is pushing for reforms to facilitate international payments in local currencies, making global trade transactions smoother and less dependent on the dollar.
Key Highlights:
- BRICS nations are exploring blockchain technology and payment system integration to reduce transaction costs.
- Brazil’s Pix payment system, launched in 2020, is being considered for international integration.
- The BRICS Summit in July will include discussions on cross-border payment solutions.
While BRICS nations are looking for alternatives to simplify transactions, no country is planning to eliminate its U.S. dollar reserves.
