Egyptian Prime Minister Mostafa Madbouly confirmed that BRICS countries are increasingly adopting local currency reconciliation for trade. The formation of a new BRICS currency was not discussed at the 17th Summit on July 6th and 7th. In fact, Brazil’s Indian ambassador, Kenneth Felix Hachinsky da Nobrega, confirmed in a recent interview that the BRICS Alliance has no plans to create a new currency that will challenge the US dollar.
The leaders of the BRICS Summit discussed only the settlement of local currency trade among interested member states. The 2025 summit had derailment and the formation of a new currency kept in the backseat. There is no guarantee that the Alliance will reject two agendas and will be able to raise them in the future.
The Egyptian Prime Minister said the use of local currency in trading settlements has contributed to easing foreign exchange demand. Additionally, it helps maintain a more balanced commercial relationship between members of the block. The Prime Minister added that the BRICS group is heading for a wider implementation of the system, and could begin with bilateral arrangements and expand into multilateral use among all future BRICS members.
The idea of currency in BRICS has been pushed out multiple times, but the concept continues to pop out again in the lecture. Russia is one of the most vocal supporters of the BRICS currency. But the relationship between the US president and the US president challenges the idea that it outweighs the US dollar. Additionally, the new BRICS currency requires a strict legal framework that BLOCs are not prepared to tackle. As explained in Envo, the best option for now is to use local currency for settlements. Launching new bids also requires gaining the trust of other countries to survive in the Forex market.
