According to one expert, the under-development BRICS Currency may still be on the horizon, despite ongoing threats from the US. The group of nine had a huge 2024 in terms of growth, expanding its numbers and efforts to dethrone the US dollar. Upon his US election win, Donald Trump sent out a warning to the bloc to cancel its de-dollarization efforts and currency development. However, one expert points out that BRICS may not adhere to this threat.
“At the last BRICS Summit in Kazan in October 2024, many participants, including founding members, new members, and even invited countries, were enthusiastically talking about an alternative to the US dollar,” according to a source close to BRICS affairs. The recent BRICS summit featured plenty of conversation around the new currency, including a prototype BRICS bill given to Russian President Vladimir Putin.
BRICS to Ignore Trump Threat and Launch New Currency?
In December 2024, Trump wrote on social media that the idea that the BRICS countries were trying to move away from the dollar while the US would stand and watch was over. “We require a commitment from these countries that they will neither create a new BRICS currency nor back any other currency to replace the mighty US dollar or they will face 100 percent tariffs and should expect to say goodbye to selling into the wonderful US economy,” Trump wrote on Truth Social.
However, Trump’s measure would not help to stem the dollar’s decline. It is part of a larger tariff agenda that the president-elect appears ready to implement. Apart from being the preferred currency for international trade and finance, the US dollar continues to be the most significant medium of exchange. Additionally, it plays a prominent role as an efficient store of value. Central banks also hold foreign exchange reserves to guarantee a consistent supply of imports, protect against currency crises, and guard against macroeconomic instability.
Also Read: De-Dollarization: Can Trump Save the US Dollar in 2025?
Thus, BRICS may not have as much resistance to launch BRICS currency as Trump says there is in terms of punishment. With the US on its heels looking to bring in a new administration, the bloc may press on with its developmental currency in 2025. While the launch date of the new currency is unknown, BRICS is already practicing de-dollarization, using local currencies in trade within its grouping. Countries including Russia, India, and China are already committing to major deals in oil and other resources in currencies outside of the greenback. That pattern will likely continue in 2025, at least until the new currency is launched.
Furthermore, in 2025, more than 20 countries have expressed their interest in joining the bloc and participating in decision-making. The bloc is mixed on the idea of further expansion after its most recent summit.