In Brasília on Tuesday, September 9, 2025, Brazilian President Luiz Inácio Lula da Silva doubled down on his advocacy for a common BRICS currency during a virtual summit with leaders from the bloc, which now includes 11 members: Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, United Arab Emirates, Ethiopia, Indonesia, and Iran. This renewed call comes amid escalating US tariffs of 50% on Brazilian exports, imposed by President Donald Trump in July, which Lula attributes to discomfort over the group’s rising influence in global trade. Representing half the world’s population and about 35% of global GDP, the BRICS aims to foster intra-bloc transactions without relying on the dollar, a single-nation currency that handles 88% of international payments despite the US comprising just 4% of humanity. Lula stressed the need to test such a mechanism, even at the risk of failure, to promote equitable multilateralism and shield emerging economies from unilateral sanctions and exchange rate swings. With the real appreciating 3.7% against the dollar this year—reaching R$5.3870, its lowest since June 2024—the timing bolsters Brazil’s position in these talks. The proposal seeks to enable settlements in local currencies or a shared unit, potentially slashing transaction costs by up to 20% and enhancing financial sovereignty for the Global South.
The virtual gathering, hosted by Lula under Brazil’s 2025 BRICS presidency, built on discussions from the July Rio summit, where members outlined blockchain-based platforms for cross-border payments.
- BRICS nations now conduct 50% of internal trade in local currencies, up from 25% in 2023, driven by sanctions on Russia since 2022.
- Initiatives like the BRICS Bridge have piloted digital settlements between China and India, handling volumes equivalent to $500 billion annually.
- Bilateral pacts, such as the 2023 Brazil-China agreement, boosted trade by 25%, mostly in real and yuan, bypassing dollar conversions.
These steps reflect a gradual de-dollarization trend, accelerated by geopolitical frictions.
BRICS expansion bolsters financial integration efforts
The bloc’s growth to 11 members in 2024 and 2025 has diversified its economic base, adding oil-rich nations like Saudi Arabia and the UAE, which strengthens the case for a unified payment system. Lula clarified that the currency initiative targets internal efficiency, not a direct assault on the dollar, drawing parallels to the euro’s role in European trade. This pragmatic stance echoes the 2004 Brazil-Argentina accord, which doubled bilateral commerce over a decade through local currency swaps.
China, holding $3.2 trillion in reserves, and India lead prototype tests, linking systems like India’s UPI for rupee-based remittances with South Africa.
The New Development Bank, chaired by Dilma Rousseff, has greenlit $32 billion in sustainable projects since 2014, free from dollar-linked strings.
Central banks coordinated $200 billion in currency swaps by February 2025, easing volatility for exporters in commodities.
US tariffs fuel urgency for alternative mechanisms
Trump’s tariff hikes—from 10% in April to 50% in July 2025—hit Brazilian steel and agriculture hardest, raising costs by 15% and prompting WTO challenges from Brasília. Lula hinted at US “jealousy” over BRICS success in uniting similar Global South interests, amid threats of 100% duties on nations pursuing dollar alternatives. This rhetoric underscores a diplomatic standoff, with Brazil rejecting direct Trump talks but pursuing multilateral recourse.
Experts note the New Development Bank funds 150 infrastructure ventures, contrasting IMF restrictions tied to Western finance.
- BRICS is forecast to claim 33.9% of world GDP by 2027, outpacing the G7 in economic sway.
- Russia and Iran settle 60% of mutual trade in local currencies, spurred by post-2022 sanctions.
- Brazil ramped up real-denominated exports to China by 30% in 2025, aligning with phased independence goals.
Lula probed tariff links to BRICS engagement but insisted single-currency dependence invites external shocks, resonating in G20 forums under Brazil’s 2024 chairmanship.
Channels to Washington stay open, rooted in mutual respect, as September’s UN General Assembly looms.
Digital platforms advance practical testing phases
Launched at the October 2024 Kazan summit, the BRICS Bridge prototypes facilitate national currency clearings, modeled on IMF Special Drawing Rights but tailored for emerging markets. Lula argued these tools interrogate dollar monopoly without abrupt breaks, noting its standard status arose informally, not via global consensus. Bloc central banks explore a weighted currency basket, streamlining settlements across disparate economies.
China routes 40% of Russia trade via digital yuan, saving billions on forex fees.
Brazil tempers bolder Russian ideas, prioritizing internal harmony amid Sino-Indian frictions.
- Brazil-China swaps avert $50 billion yearly in currency hedging expenses.
- Russia amassed 450 tonnes of gold reserves in early 2025, up 44% from 2024’s first half, signaling asset diversification.
- South Africa weaves rand into UAE mining ventures, emphasizing renewables.
Lula framed BRICS as a counter to power concentrated in few hands, fostering development dialogues.
International backings shape collective trajectories
Leaders including China’s Xi Jinping and India’s Narendra Modi offered measured endorsement at the Rio summit, calling for feasibility studies to curb risks. Russia’s Vladimir Putin credited Lula with sparking the concept in 2023, elevating it during Brazil’s tenure. These stances clash with Trump’s January and February warnings, tying duties to any dollar detour.
July’s Davos World Economic Forum dissected financial fragmentation, spotlighting BRICS as multipolarity driver, with volatility drops of 10-15% eyed for commodity flows.
- China pilots blockchain for secure multi-currency deals with Ethiopia.
- India streamlines rupee outflows via UPI to South Africa, serving 4 billion people.
- Saudi Arabia floats dirham in energy pacts with Iran, stressing stability.
Lula tied economic multilateralism to environmental pacts, decrying US Paris Accord exit, and extended a COP invite sans reply.
Bilateral models guide broader scaling
The 2004 Argentina deal, enabling real-peso trades sans dollar, models BRICS ambitions, lifting volumes tenfold in years. Lula invoked it to note euro trades face no scrutiny, querying dollar permanence. Brazil hiked real exports to China 30% in 2025, cementing gradual de-dollarization.
Its central bank oversees $200 billion mutual credit lines, aiding SMEs with forex relief.
This method shuns sudden shifts, spotlighting gains for commodity shippers.
- BRICS Pay pilots among Brazil, China, Russia target $1 trillion yearly by 2027.
- Ethiopia blends birr into Indonesia agriculture swaps, trimming 15% off costs.
- Egypt trials pound in Saudi infrastructure, syncing growth agendas.
Lula cast BRICS as Global South voice amplifier, tackling hunger and inequity overlooked elsewhere.
Technical meetings outline rollout timelines
September 2025 virtual sessions with foreign ministers map blockchain payment prototypes. Lula eyes UN podium on September 23 to weave in sovereignty and sustainability, eyeing Trump meet. This docket mirrors bloc expansion to 45% global populace in 2024.
The president touted balanced talks where smaller states resist larger ones, styling BRICS as equilibrium engine.
- Moscow trials affirm multi-currency blockchain safety, stressing reach.
- Brazil brokers inner accords, mending rifts for fiscal unity.
- Forecasts peg 90% intra-BRICS trades dollar-free by 2027.
Early setbacks won’t doom the venture, per Lula, viewing Brazil at multipolar finance helm.