The South African government has dismissed reports of plans to introduce a Brics currency. In a statement, the Department of International Relations and Cooperation, (DIRCO) clarified that discussions within the Brics bloc focus on using national currencies for trade, not creating an alternative to the US dollar.
The statement follows US President-elect Donald Trump’s threat of 100% tariffs on Brics nations supporting de-dollarization. Dirco emphasized South Africa’s commitment to mitigating foreign exchange risks by increasing the use of local currencies in trade.
The New Development Bank, a Brics financial institution, continues to rely on the dollar for investments, which have surpassed $30 billion globally. Meanwhile, the rand fell 0.4% to R18.12 in early trading amid a stronger US dollar.
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