Africa
Economy
South Africa
South Africa’s government has clarified that there are no plans to create a new BRICS currency
louis Buyisiwe
Dec 3, 2024
South Africa’s Department of International Relations and Cooperation
South Africa’s government has clarified that there are no plans to create a new BRICS currency. This follows reports claiming otherwise and recent comments from US President-elect Donald Trump about imposing 100% tariffs on countries supporting a currency alternative to the US dollar.
South Africa’s Department of International Relations and Cooperation (Dirco) explained, “Recent misreporting has led to the incorrect narrative that BRICS is planning to create a new currency. This is not the case. The discussions within BRICS focus on trading among member countries using their own national currencies.”
The rand weakened slightly, along with other emerging-market currencies, due to a stronger US dollar. By mid-morning in Johannesburg, it fell by 0.4%, trading at R18.1283 to the dollar.
BRICS, which includes Brazil, Russia, India, China, South Africa, and new members like Iran, Egypt, Ethiopia, and the UAE, continues to call for changes to the global financial system but hasn ’t agreed on introducing a shared currency.
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The New Development Bank, tied to BRICS, still uses the US dollar for its investments, which have exceeded $30 billion across member nations and other developing economies, Dirco confirmed.
“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.
They also highlighted the need to improve systems for settlements in national currencies and expand banking networks to support this goal.
