South Africa’s government has firmly denied claims that the BRICS nations are working to establish a new currency, following allegations by former US President Donald Trump.
This comes after President-elect Trump had threatened to impose 100% tariffs on BRICS countries if they pursued a currency alternative to the US dollar.
On X (formally twitter) Trump tweeted: The idea that the BRICS Countries are trying to move away from the Dollar while we stand by and watch is OVER. 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 U.S. Dollar or, they will face 100% Tariffs, and should expect to say goodbye to selling into the wonderful U.S. Economy. They can go find another “sucker!” There is no chance that the BRICS will replace the U.S. Dollar in International Trade, and any Country that tries should wave goodbye to America."
The Department of International Relations and Cooperation (Dirco) clarified in a statement that the “recent misreporting has led to the incorrect narrative that BRICS is planning to create a new currency.
''This is not the case. The discussions within BRICS focus on trading among member countries using their own national currencies.”
In response to the growing tensions, chairperson of Parliament's Select Committee on Economic Development and Trade, Sonja Boshoff, expressed concern about the potential negative impact these developments could have on trade relations.
She emphasised the importance of maintaining strong ties between South Africa and the US, stating, “South Africa and the US need each other as trade partners, and under no circumstances should either side entertain the idea of severing ties.”
Boshoff highlighted that the longstanding relationship between the two nations has been grounded in mutual respect, cordiality, and decency.
“These principles should remain the foundation of our trade relations with the US. Such a foundation will ensure that South Africa–US trade can withstand any diplomatic challenges or tensions that may arise,” she said.
Trump’s allegations about the BRICS currency and his threats regarding tariffs and market closures followed South Africa’s explanation that the BRICS stance is centred on promoting trade among member nations in their own currencies, not abandoning the dollar altogether.
Boshoff also reiterated South Africa’s deep appreciation for the historical support the US provided during the country’s struggle for freedom.
“We must not jeopardise these historical ties. South Africa is a major beneficiary of AGOA (the African Growth and Opportunity Act) and many exchange programs in education, innovation, and technology. These relations must endure, bringing mutual benefits to the people of both our countries,” she said.
Furthermore, Boshoff pointed out that while not formally codified, there is an unwritten expectation that presidents of a democratic South Africa maintain cordial relations with US presidents.
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