South Africa’s government has emphatically denied reports suggesting the BRICS group is developing a new currency, clarifying its position following a threat from US President-elect Donald Trump to impose 100% tariffs on bloc members backing such an initiative, Bloomberg reports.
In a statement released by the Department of International Relations and Cooperation (Dirco), the South African government said that “recent misreporting has led to the incorrect narrative that BRICS is planning to create a new currency. This is not the case.” The statement clarified that BRICS discussions instead center on facilitating trade among member nations using their respective national currencies.
The rand, South Africa’s currency, reacted to the renewed strength of the dollar, falling 0.4% to 18.1283 against the dollar by 10:20 a.m. in Johannesburg. This decline mirrored similar weakness among other emerging market currencies.
BRICS, comprising Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates, has advocated for reforms within the global financial system. However, the bloc has not reached a consensus on adopting a new currency. The New Development Bank (NDB), a BRICS initiative, continues to utilize the US dollar for its investments, exceeding $30 billion in member states and other developing economies, according to Dirco.
