Recent statements from Kremlin officials and analysts indicate that the BRICS nations are not currently pursuing the establishment of a common currency. Dmitry Peskov, the spokesman for the Kremlin, confirmed that there are no ongoing discussions about creating a shared currency among BRICS members, which include Brazil, Russia, India, China, and South Africa, along with newer members like Iran and the UAE. Instead, the focus remains on enhancing investment platforms and mutual projects in third countries[1][2].
This clarification comes in the wake of threats from U.S. President Donald Trump, who warned that he would impose 100% tariffs on BRICS nations if they attempt to introduce a new currency to challenge the dominance of the U.S. dollar. Trump’s comments reflect concerns about potential economic shifts that could arise from a unified BRICS currency, especially given the bloc’s growing influence in global trade[2][3].
Analysts note that while there have been discussions about reducing reliance on the U.S. dollar, particularly following sanctions against Russia in 2022, a common currency faces significant hurdles. These include internal disagreements among member states and varying economic conditions. For instance, India has expressed caution regarding any move towards a shared currency, emphasizing that such an initiative does not align with its current economic strategy[2][4].
Furthermore, experts suggest that the diverse political and economic landscapes within BRICS make it challenging to forge a consensus on a common currency. The bloc lacks the unified market and trade policies seen in other economic unions like the European Union, which complicates efforts to create a stable and reliable alternative to the dollar[3][4].
In summary, while discussions around a BRICS currency have generated interest amid geopolitical tensions, current statements from key officials suggest that no concrete plans are in place for its development. Instead, member countries are focusing on enhancing trade through existing currencies rather than pursuing a new joint monetary system[1][2][3].
Citations:
[1] https://www.aa.com.tr/en/world/russia-says-brics-not-discussing-common-currency/3467953
[2] https://www.voanews.com/a/india-not-pursuing-shared-brics-currency-analysts-say/7888407.html
[3] https://www.dw.com/en/trump-threatens-100-tariffs-on-brics-over-new-currency-plans/a-70934600
[4] https://www.cfr.org/backgrounder/what-brics-group-and-why-it-expanding
[5] https://www.coingecko.com/en/coins/brics-chain/usd
[6] https://carnegieendowment.org/research/2023/12/the-difficult-realities-of-the-brics-dedollarization-effortsand-the-renminbis-role
[7] https://www.reuters.com/markets/currencies/what-is-brics-currency-is-us-dollar-trouble-2024-12-17/
[8] https://afripoli.org/the-brics-currency-conundrum-weighing-the-pros-and-cons-of-a-unified-monetary-system
