BRICS Says Not Planning Single Currency
Russian officials are bristling in response to U.S. President Donald Trump warning of 100% tariffs on BRICS-economies by saying the coalition is not developing a replacement currency for the United States dollar.
BRICS comprises Brazil, Russia, India, China, and South Africa-whose leadership have never considered pursuing a single, unified currency confirms Kremlin spokesman Dmitry Peskov to Reuters on January 31.
“The point is that BRICS is not talking about creating a common currency, nor has it ever done so,” Peskov said.
Instead, he emphasized that BRICS is working on investment platforms to deepen mutual financial cooperation among its membership.
Could There Be a “BRICS Currency”?
As of 2023, there have been whispers from some BRICS members, such as Brazil, for a common currency to help the bloc trade and invest among themselves using less of the dollar.
Talks in October 2024 also involved the “Unit,” a gold-backed currency for cross-border settlements, which some analysts said would undermine the dominance of the dollar in international trade.
Critics say it would take years to put together such a currency but even then, if at all it ever sees the light of day, it would be more of a supporting financial instrument rather than an alternative to the dollar.
Trump Threatens 100% Tariffs on BRICS Nations
On Jan. 30, Trump took to social media, rebuking any attempt by BRICS to move away from the dollar and promising heavy tariffs in return.
“There is no chance that BRICS will replace the US dollar in international trade or anywhere else. Any country that tries should say hello to tariffs and goodbye to America,” Trump declared.
Peskov downplayed Trump’s remarks, recalling that he had issued similar threats back when he was still president-elect in 2024.
“There have been statements like this before,” he said, adding that Trump may need a more detailed briefing on BRICS’ economic agenda.
Will Trump Also Target CBDCs?
Trump’s threats come after his Jan. 23 executive order promoting US digital financial leadership. The order backs dollar-backed stablecoins while banning central bank digital currencies (CBDCs).
Some analysts speculate that Trump’s administration may extend its trade policies to penalize nations developing CBDCs, potentially impacting international monetary shifts.
Meanwhile, European Central Bank (ECB) board member Piero Cipollone has urged the EU to accelerate its digital euro project to enhance financial sovereignty.
While Trump wages his tariff war, BRICS remains committed to economic cooperation rather than currency rivalry.
