Why Brics can’t do away with US dollar even as currency cooperation rises

Brazil’s dismissal of the idea of a BRICS currency signals that the bloc may continue to pursue less politically fraught monetary cooperation that stops short of challenging the US dollar’s dominance, such as swaps and seamless payment systems, according to analysts.During Brazilian President Luiz Inacio Lula da Silva’s recent trip to India, Lula sought to downplay speculation that the 10-member grouping of developing nations was drafting plans for a shared currency.In an interview with an Indian news channel on Friday, he said “that there has been no proposal, no draft, and no internal discussion to create a BRICS currency”.“India and Brazil can trade in their own currencies and do not need to rely on the US dollar for bilateral deals,” Lula added.Speculation about a BRICS currency has swirled in the past few years as the push towards dedollarisation continues.During the BRICS summit in South Africa in 2023, leaders discussed ways to settle more trade within the bloc without the US dollar. At the bloc’s summit in Brazil in 2025, Russian President Vladimir Putin urged BRICS countries to make greater use of their currencies for trade.