Rumors on a common currency of the BRICS return regularly, and feed speculation on a possible counterweight to the dollar. While several nations seek to reduce their dependence on the greenback, the hypothesis of a shared currency triggers the concern of the United States. Donald Trump has also threatened to impose sanctions on countries that are considering an alternative. However, the Kremlin has just defused the debate: no project of this type is under discussion. Instead, the block favors joint investment platforms, which leaves doubt about its true monetary strategy.
The Kremlin closes the door to a single currency
Dmitry Peskov, spokesperson for the Kremlin, has dismissed any ambiguity in the position of Russia: “The BRICS do not discuss the creation of a common currency”. This development responds to the many rumors that evoke a project intended to compete with the dollar. Despite the interest of certain member countries for a monetary alternative, no initiative of this type is underway.
According to Peskov, discussions within the BRICS relate mainly to joint investment platforms and economic cooperation mechanisms. Far from wanting to upset the world monetary order, the group seeks above all to strengthen exchanges between its members.
This declaration comes in a context of strong tensions with Washington. Thus, some American officials perceive the BRICS as a threat to the supremacy of the dollar. By putting an end to speculation, Moscow seems to want to dispel concerns And avoid an economical escalation with the United States.
Trump accentuates the pressure on the BRICS
If the Kremlin Declaration ends speculation on a common currency of the BRICS, it does not dispel the growing tensions with Washington. Donald Trump reacted firmly and threatens to impose customs duties of 100 % on products from the countries of the block which would consider creating a new currency. On Truth Social, he denounced an attempt to weaken the dollar and warned: “The idea that the countries of the BRICS try to move away from the dollar while we remain their arms crossed is over. They will have to undertake not to create a new currency, under penalty of being completely excluded from the American market ”.
These threats are integrated into a wider strategy which aims to maintain the hegemony of the greenback on international exchanges. However, far from dissuading the countries of the BRICS, this pressure could accelerate the dynamics of dedollarization. Rather than a single currency, the block explores other solutions, such as bilateral agreements in local currencies and the use of gold as a reference for certain transactions. Faced with an increasingly fragmented economic environment, the diversification of financial regulations is gradually imposed as a viable alternative.
Paradoxically, Trump's position could strengthen the will of emerging nations to get rid of the dollar. By seeking to dissuade any questioning of the supremacy of the greenback, on the contrary, it risks pushing the countries of the BRICS to intensify their financial cooperation, which thus digs a deeper gap with the United States. If no common currency is in preparation, the movement towards a monetary multipolarization seems inevitable.
The development of the Kremlin ends the debate on a single currency of the BRICS, but not on the global monetary diversification. If the block does not plan to unify its currencies, several members are already looking for alternatives to the dollar to secure their exchanges. American sanctions and trade tensions are likely to speed up this movement, which encourages more countries to strengthen their payment mechanisms in local currencies. This fragmentation of exchanges gradually draws a financial multipolarization, still limited to regional transactions. It remains to be seen whether this trend will remain marginal or if it will eventually rebalance the international monetary order.
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