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BRICS — What it is, why it matters, history, the “BRICS currency” discussion, and the latest updates
BRICS is a grouping of major emerging economies — Brazil, Russia, India, China and South Africa — formed to increase global influence for rising economies, promote cooperation in trade, finance and development, and challenge an international order long dominated by advanced Western economies. Since its first formal summit in 2009 it has expanded influence, created its own development bank and begun exploring alternatives to dollar-centric trade settlement (including more local-currency trade and proposals for a common or commodity-backed currency). While political leaders have discussed a new BRICS currency in recent years, practical implementation remains distant; members are currently advancing technical payment systems, trade in local currencies, and institutional reforms instead.
Origins and when BRICS was formed
The idea behind the grouping traces to the early 2000s when analysts noticed the rapid economic growth of four large emerging economies. The four—Brazil, Russia, India and China—first convened politically and economically, and the first formal BRIC leaders’ summit was held on 16 June 2009 in Yekaterinburg, Russia. South Africa was invited soon after and formally joined the group at the end of 2010, turning BRIC into BRICS. Since then, BRICS has met annually and created cooperative institutions to fund development and coordinate policy.
Membership, expansion and structure
Originally four founding economies became five with South Africa’s accession in 2010. Over the last few years the grouping has expanded its reach through a “BRICS+” approach and the addition of new members and partner countries. Notably, Indonesia was accepted as a full member in early 2025, widening BRICS’ representation in Southeast Asia and signaling a deliberate expansion to include more of the Global South. The grouping now operates by consensus, with rotating presidencies and summit meetings that produce declarations and action plans.
Key institutions and what BRICS aims to do
The BRICS countries have pursued both symbolic and practical steps to reduce dependence on established Western-dominated institutions and systems:
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New Development Bank (NDB) — established by BRICS to finance infrastructure and sustainable development projects as an alternative/complement to the World Bank and regional development banks.
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Cooperation on payments and trade — joint projects to increase trade in member currencies, create alternative payment messaging arrangements, and reduce exposure to unilateral sanctions or financial exclusion.
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Diplomacy and multilateral reform — a unified push for reforms to institutions like the IMF and World Bank so that voting power and leadership better reflect current global economic realities.
The “BRICS currency” — what people mean and what’s realistic
When people refer to a “BRICS currency” they mean several different but related ideas:
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Greater use of local currencies for bilateral and multilateral trade — members already increasingly invoice and settle trade in national currencies instead of the US dollar.
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A common/basket currency or a commodity-backed currency — proposals have included a currency tied to a basket of BRICS currencies or backed by commodities such as gold. Such ideas are debated as a way to create an alternative reserve or settlement medium.
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A digital or blockchain-based settlement system — several proposals discuss a technical payment infrastructure that allows cross-border payments without relying exclusively on Western rails (e.g., SWIFT).
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Symbolic currency initiatives — in 2025, BRICS leaders and affiliated events distributed symbolic banknotes and held demonstrations showing the concept of a shared currency as a political message rather than a finished monetary product.
Practical hurdles to a single BRICS currency
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Economic heterogeneity — member economies differ greatly in size, inflation, monetary policy, exchange-rate regimes and economic openness.
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Political differences — BRICS members have different geopolitical priorities; a single currency would require unprecedented policy coordination and shared institutions.
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Trust, liquidity and reserve confidence — for any currency to circulate widely it must be stable, liquid and widely accepted; this requires long-run macroeconomic credibility.
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Technical and legal infrastructure — clearing, settlement, dispute resolution, and convertibility arrangements would need to be built and tested.
Latest developments and headline news (snapshot as of 11 September 2025)
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2025 Rio de Janeiro summit (6–7 July 2025): The 2025 BRICS leaders’ summit in Rio focused on finance, climate and development. Leaders advanced declarations on finance and called for reforms of global financial institutions; they emphasized strengthening intra-BRICS trade and cooperation. While currency discussions were high on the agenda, leaders did not agree to launch a common currency, and emphasis remained on technical progress in payment systems and local-currency trade.
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Symbolic banknotes and public messaging: In mid-2025, BRICS-affiliated events included the distribution of symbolic banknotes and visual statements to illustrate the concept of an eventual BRICS monetary instrument. These were symbolic political gestures meant to highlight the concept rather than introduce legal tender.
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Expansion continues: Indonesia’s formal accession early in 2025 shows BRICS’ aim to broaden its membership footprint beyond the original five; BRICS has also developed a “partner countries” arrangement to include more Global South states in dialogue.
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Recent public statements from members (September 2025): India’s Chief Economic Adviser publicly clarified that India is not pursuing an immediate alternative to the US dollar for global trade settlements, reflecting caution and the complexity of shifting away from dollar instruments. At the same time, some BRICS leaders continued to press for stronger trade ties and reduced dependence on unilateral measures in international trade.
Why the “BRICS currency” talk matters — and what it could mean for the world
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Geopolitical signal: Even talk of alternative currencies signals a desire for a multipolar financial system. That political message alone can influence trade partners and reserve managers to diversify.
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Trade impact: More local-currency settlement reduces exchange-rate risk and transaction costs for bilateral trade among members, potentially boosting trade flows.
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Sanctions resilience: Alternative payment systems and local currency trade reduce a country’s vulnerability to foreign sanctions tied to dollar systems.
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Global finance: If gradually adopted, a BRICS-centric settlement system could encourage other countries (especially in the Global South) to change reserve and trade patterns — but such changes would likely be incremental rather than immediate.
Outlook — short and medium term
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Short term (1–3 years): Continued technical work on payment systems, more bilateral local-currency trade, deeper cooperation through NDB and finance declarations, and expansion of membership. Political leaders will continue to signal ambitions without creating legal tender.
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Medium term (3–10 years): If political will and institutional design converge, BRICS could create coordinated settlement mechanisms, a limited regional instrument or reserve arrangement, or a digital settlement token. A fully fledged, euro-style BRICS currency would require deeper fiscal and monetary convergence—an unlikely near-term outcome.
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Key variables to watch: alignment of macroeconomic policies, speed of payment-system deployment, membership dynamics (new members add complexity), and reactions of other major economies and global investors.
Short, actionable takeaway
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BRICS is a maturing bloc that wants more influence in global finance.
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The idea of a “BRICS currency” is being actively discussed, but it remains mostly exploratory and symbolic for now; practical steps focus on local currency trade and alternative payments.
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Recent events in 2025 show BRICS growing (new members) and pushing for IMF and global financial reforms — but major members like India are cautious about replacing the US dollar in the near term.
Summary:
BRICS — Origins, ambitions, the currency debate, and what’s happening now
Brief summary: BRICS is a group of emerging economies — Brazil, Russia, India, China and South Africa — formed to boost influence and cooperation for rising economies, finance development projects, and pursue a more balanced global order. While members have discussed a common BRICS currency, practical steps so far have concentrated on local-currency trade, alternative payment systems, and institutional reform. Recent summits and statements in 2025 show active expansion and technical progress, but not an imminent launch of a unified currency.
When and how BRICS formed: The BRIC countries (Brazil, Russia, India and China) first met at a formal leaders’ summit on 16 June 2009. South Africa joined at the end of 2010, after which the group became known as BRICS. Since then the grouping has held annual summits, created cooperative institutions, and pursued coordinated economic and diplomatic agendas.
Membership and expansion: Beginning as four countries and becoming five in 2010, BRICS has expanded its engagement model with partner countries and new members. In 2025 the group welcomed additional members, reflecting a deliberate strategy to broaden representation from the Global South and to build more coordinated financial and trade arrangements.
Institutions and goals: BRICS established the New Development Bank to finance infrastructure and sustainable development projects as a complement to existing global banks. The group also pursues reforms of international financial institutions, seeks to improve trade and payment arrangements among members, and aims to provide an alternative voice for developing economies.
The BRICS currency debate: Proposals vary from increased local-currency trade and digital settlement mechanisms to long-term ideas of a basket or commodity-backed currency. Some symbolic gestures — such as distributing illustrative banknotes at events — have emphasized the ambition. However, a single BRICS currency faces major obstacles, including the large economic differences between members, political divergence, and the need to build trust, liquidity and legal infrastructure.
Latest (2025) developments: The 2025 BRICS leaders’ meeting focused on finance, climate and development and produced declarations pushing for IMF reform and stronger intra-BRICS cooperation. Symbolic initiatives and technical planning for payment systems continued, but no unified currency was launched. Some members and officials have publicly stated caution: for example, India’s economic leadership clarified that India is not planning to replace the US dollar for global trade settlements in the immediate future.
Outlook: Expect steady, practical steps — more local currency settlement, greater membership, and stronger institutional cooperation — rather than an immediate currency revolution. A full, euro-style BRICS currency would require deep monetary and fiscal integration and is not a near-term prospect.
written by:- Ansh shukla