SA takes a stance on unified Brics currency as Trump threatens 100% tariffs

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Instead, the focus remains on enhancing trade among member nations—Brazil, Russia, India, China, and South Africa—through the use of their respective national currencies, it said.

“Recent misreporting has led to the incorrect narrative that Brics is planning to create a new currency,” Dirco said in a statement.

This stance comes in the wake of US President-elect Donald Trump's post on his Truth Social network at the weekend wherein which he cautioned the Brics nations against pursuing the creation of a new currency to rival the US dollar. He reiterated his threat to impose a 100% tariff if such efforts were undertaken.

“The idea that the Brics countries are trying to move away from the dollar while we stand by and watch is over,” Trump said.

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In direct response, Dirco's sentiment underscores the bloc's commitment to fostering economic co-operation while maintaining monetary sovereignty among its diverse economies.

Brics, comprising emerging market powers Brazil, Russia, India, China, South Africa, along with Iran, Egypt, Ethiopia, and the United Arab Emirates, has advocated for reforms to the global financial system but has not reached a consensus on introducing a new currency.

The New Development Bank, established by the bloc, still utilises the dollar for its investments, which have surpassed $30bn across member nations and other developing economies, according to Dirco.

“We require a commitment from these countries that they will neither create a new Brics currency, nor back any other currency to replace the mighty US dollar or, they will face 100% tariffs, and should expect to say goodbye to selling into the wonderful US economy,” Trump added.