- BRICS countries are increasing use of local currencies in trade settlements.
- The alliance did not discuss the creation of a new joint currency during the 17th summit on July 6 and 7.
- Brazil’s Ambassador to India confirmed there are no current plans for a BRICS currency to rival the U.S. dollar.
- Egypt’s Prime Minister said local currency settlements reduce reliance on foreign exchange and create more balanced trade.
- The idea of a BRICS currency remains on hold due to legal complexities and the need for international trust.
Egyptian Prime Minister Mostafa Madbouly confirmed that BRICS member nations are increasingly settling trade in their own local currencies. During the 17th BRICS summit on July 6 and 7, officials did not address the proposal to form a new common currency.
Kenneth Felix Haczynski da Nobrega, Brazil’s Ambassador to India, stated in a recent interview that the BRICS alliance currently does not plan to launch a joint currency meant to compete with the U.S. dollar.
Summit leaders focused on enabling trade settlements in local currencies among interested BRICS countries. De-dollarization and the creation of a new BRICS currency were not on the main agenda at the 2025 meeting and remain future possibilities rather than established goals.
Prime Minister Madbouly explained that using local currencies helps reduce the pressure on members’ foreign exchange reserves. He added that this approach promotes more equal trade partnerships within the bloc, starting with bilateral trade and possibly expanding to agreements involving all BRICS members in the future.
The summit demonstrated that while talks about a new BRICS currency have surfaced often, the group prioritizes practical steps like trade in local money. Russia has expressed strong interest in a shared currency, but legal requirements and the need for trust from global markets have slowed progress.
According to the original report, the best current solution remains the increased use of local currencies for direct settlements, as developing a new international currency requires complex legal groundwork and broad international support.
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