Brazil’s BRICS presidency this year will not push for a shared currency but will focus on easing international payments and reducing reliance on the U.S. dollar in global trade, according to four government officials cited by Reuters. While Brazil’s proposed agenda could raise concerns in Washington, officials emphasized it is not directed at replacing the dollar. Instead, Brazil aims to reform BRICS financial systems, exploring blockchain technology and linking payment systems to lower transaction costs.
President Donald Trump recently warned BRICS against challenging the dollar’s dominance, hinting at potential tariffs on countries that try.
Despite previous advocacy from Brazilian President Luiz Inácio Lula da Silva for a BRICS currency, officials clarified that the idea has never entered technical discussions. Lula has since moderated his stance, defending BRICS nations’ right to explore alternatives without committing to a new currency.
Brazil’s fast-growing instant payments system, Pix, is central to its financial innovation. Brazil also operates a Local Currency Payment System (SML), which allows transactions to be settled in local currencies rather than the dollar, but adoption has been slow due to settlement delays.
The July BRICS summit will revisit these proposals, aiming to build a more connected and efficient payment network.
