South Africa Denies Plans for BRICS Currency Amid Dollar Strength and US Tariff Threats

South Africa has firmly dismissed speculation about the creation of a BRICS currency, citing misreporting as the cause of confusion. The Department of International Relations and Cooperation (Dirco) clarified in a statement that discussions within the BRICS bloc focus on facilitating trade in national currencies rather than introducing a new global currency.

The rumors emerged amid heightened tensions following threats from US President-elect Donald Trump to impose 100% tariffs on BRICS members exploring alternatives to the US dollar. Dirco emphasized that South Africa supports increased use of national currencies to reduce reliance on the dollar but has no intention of pursuing de-dollarization in a disruptive manner.

The South African rand, like other emerging-market currencies, weakened as the dollar gained strength. By mid-morning in Johannesburg, the rand had dropped 0.4%, trading at R18.1283 to the dollar.

BRICS—comprising Brazil, Russia, India, China, South Africa, and additional members such as Iran and Egypt—has consistently advocated for reforms to the global financial system. However, the bloc has yet to agree on a new currency, relying instead on the US dollar for investments through its New Development Bank.

Dirco highlighted South Africa’s commitment to mitigating exchange rate risks by encouraging trade in national currencies. The government also sees potential in strengthening correspondent banking networks and building settlement infrastructure for cross-border transactions.

As BRICS nations navigate economic challenges and geopolitical pressures, their approach to financial reforms will remain in focus. South Africa’s emphasis on collaboration and gradual transition reflects a measured strategy to enhance economic resilience without disrupting global markets.

Follow Joburg ETC on Facebook, Twitter and Instagram

For more News in Johannesburg, visit joburgetc.com