Egyptian Prime Minister Mostafa Madbouly has confirmed that BRICS member states are increasingly adopting local currency settlements for trade. The formation of a new BRICS currency was not discussed at the 17th summit on July 6 and 7. In fact, Brazil’s Ambassador to India, Kenneth Felix Haczynski da Nobrega, confirmed in a recent interview that the BRICS alliance has no plans of creating a new currency to challenge the US dollar.

Leaders at the BRICS summit only discussed settling trade in local currencies among interested member nations. De-dollarization and the formation of a new currency were kept in the back seat at the 2025 summit. There is no guarantee that the alliance has rejected the two agendas and could take them up in the future.

The Egyptian Prime Minister says that the use of local currencies in trade settlements contributes to easing foreign exchange demand. Additionally, it helps maintain more balanced commercial relationships between members of the bloc. The Prime Minister added that the BRICS group is moving towards wider implementation of this system, beginning with bilateral arrangements and potentially expanding it to multilateral use among all BRICS members in the future.

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While the BRICS currency idea has been pushed off multiple times, the concept continues to pop back up in talks. Russia has been one of the most vocal advocates of a BRICS currency; however, its leader’s relationship with US President Trump challenges that idea of Trumping the US dollar. Furthermore, a new BRICS currency requires a rigorous legal framework, which the bloc is not prepared to work on. The best option for now, as explained by the Envo,y is to use local currencies for settlements. Launching a new tender also needs to gain the trust of other nations to survive in the forex markets.