- Divisions within BRICS emerged over currency policy, de-dollarization, and economic strategies at the 17th Annual Summit in Rio de Janeiro.
- Leaders discussed but did not resolve disagreements about a possible BRICS-wide currency and reducing reliance on the U.S. dollar.
- The alliance expanded to include Egypt, Ethiopia, Iran, Indonesia, and the UAE, covering about 40% of global GDP.
- China and India competed for leadership roles, each promoting separate initiatives and priorities.
- The future direction of BRICS depends on India’s ability to mediate differing member interests during its 2026 presidency.
At the 17th Annual Summit in Rio de Janeiro, national leaders of the BRICS alliance met amid increased uncertainty after sharp disagreements about major currency and economic policy initiatives. Summit discussions focused on proposals for a single BRICS currency, coordinated de-dollarization plans for 2025, and challenges in aligning strategies across member nations.
According to official data, trade among the original BRICS nations grew by 40% between 2021 and 2024, reaching $740 billion a year. The group’s recent expansion brought in Egypt, Ethiopia, Iran, Indonesia, and the UAE, now representing nearly half of the world’s population and about 40% of global GDP. Brazilian President Luiz Inácio Lula da Silva led talks that highlighted fundamental divisions within the bloc. Ambassador Xolisa Mabhongo, South Africa’s lead negotiator, said, “These tariffs are not productive. They are not good for the world economy. They are not good for development.”
The organization continues to push for less reliance on the U.S. dollar in trade, though member nations showed varying levels of commitment to this goal. Criticism of unilateral protectionist measures was widespread, while several members are engaged in separate negotiations with U.S. leaders concerning tariffs and trade policies. China’s Premier Li Qiang commented, “China stands ready to closely work with members and partners in enriching the dimensions both on a bilateral basis and in multilateral relations.”
The BRICS economic agenda became more complex with the inclusion of new partner countries such as Belarus, Cuba, and Vietnam for “ad hoc practical cooperation.” The increased membership placed added pressure on internal coordination and strategic unity. Prime Minister Narendra Modi of India stated, “Under India’s BRICS presidency, we will work to define BRICS in a new form. BRICS will mean Building Resilience and Innovation for Cooperation and Sustainability.” Modi indicated that India would focus on issues facing the Global South during its 2026 chairmanship.
Dilma Rousseff, president of the New Development Bank, reported over $40 billion in projects across 11 countries, and mentioned that additional countries are being considered for future membership. The alliance’s latest Rio Declaration set out five core areas for cooperation, but analysts noted growing differences among members with diverse economic and political systems.
The summit ended with the bloc looking to India’s 2026 presidency to see if these divisions can be addressed, as BRICS aims for unified approaches to currency and trade strategies.
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