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BRICS Moves to Local Currency Trading: Is the BRICS Currency Dead?
In a notable shift from earlier ambitions, BRICS member states have opted to expand trade settlements in local currencies, shelving plans for a unified BRICS currency—at least for now. The topic was not on the agenda at the 17th BRICS summit held on July 6–7, and Brazil’s Ambassador to India, Kenneth Felix Haczynski da Nobrega, has since confirmed that no BRICS currency is being planned to challenge the U.S. dollar.
Local Currencies Rise, While BRICS Currency Stalls
According to Egyptian Prime Minister Mostafa Madbouly, local currency usage among BRICS countries is steadily growing, with bilateral settlements already in motion. This de-dollarization strategy is aimed at easing foreign exchange pressures and fostering more balanced trade relationships within the bloc.
“The BRICS group is moving toward wider implementation of local currency trade, starting bilaterally and potentially expanding to multilateral use,” said Madbouly.
Despite earlier rhetoric—particularly from Russia, one of the strongest proponents of a new BRICS currency—the bloc appears to be postponing plans for a common tender. The reason? A lack of regulatory and legal infrastructure to support such an ambitious initiative, along with doubts about whether a new currency could gain the international trust needed to thrive in global forex markets.
De-Dollarization Quietly Advances Without New Currency
While de-dollarization remains a major theme for the alliance, the 2025 summit largely avoided direct discussions about launching a BRICS currency. Analysts believe this cautious approach reflects both internal political dynamics—including Russia’s evolving relationship with U.S. President Donald Trump—and the complexities involved in forming a transnational currency system.
Although the BRICS currency proposal continues to resurface in policy circles and media narratives, member states appear more interested in the pragmatic benefits of local currency settlements than in the speculative risks of launching a new monetary instrument.
Conclusion: Strategic Pause, Not Permanent Retreat
For now, BRICS is prioritizing incremental financial integration through national currencies rather than leaping into the unknown with a new unified currency. However, the door remains open. As Ambassador da Nobrega suggested, the idea isn’t dead—just deferred.
The path forward may involve strengthening bilateral arrangements, building regulatory consensus, and gradually laying the groundwork for a unified financial alternative to the dollar-dominated system—should geopolitical conditions and internal cohesion align in the future.
@ Newshounds News™
Source: Watcher.Guru
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