Brazil nixes BRICS currency, eyes less reliance on ‘mighty’ dollar.
Brazil’s BRICS presidency this year will not advance a common currency for the group of major developing economies this year, four government officials said, but its agenda may pave the way for less reliance on the U.S. dollar in global trade.
That agenda could draw the ire of U.S. President Donald Trump, who has repeatedly warned the BRICS group, founded by Brazil, Russia, India, China, not to challenge the dominance of “the mighty U.S. Dollar.
On Thursday, he repeated the threat of “100% tariffs” on BRICS nations “if they want to play games with the dollar.”
The Brazilian officials, who requested anonymity to discuss plans, said the idea of a shared currency to replace the dollar, floated by President Luiz Inacio Lula da Silva and others at recent BRICS summits, has never entered technical discussions.
BRICS representatives will meet in South Africa this month on the sidelines of the G20 meetings, where Brazil will present its plan for the BRICS summit in July, the sources added.
Founded in 2009 and soon expanded to add South Africa, the BRICS group has recently included Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates, making it a growing diplomatic counterweight to traditional Western powers.
Source: REUTERS
