Is SA getting a BRICS currency? Why the rand in your wallet stays
A new report by Jim O'Neill and two other economists says a shared BRICS currency faces huge hurdles, but a joint payments system is feasible. Here's what that means for the rand and your money.
No. There is no BRICS currency, and nothing announced so far would replace the rand in your pocket or your bank account. A new report on the idea, published on Friday 30 October, says a shared currency for Brazil, Russia, India, China, South Africa and the newer members faces obstacles so big that its "initial prognosis" is "not hopeful" (Reuters via MarketScreener).
What the report does back is a cheaper way for these countries to pay each other in their own currencies. That is a very different thing from a new banknote.
What did the new report say?
The paper, "A BRICS+ Currency and Payments System: Feasibility and Consequences", was written by economists Gregory Chin, Danny Quah and Jim O'Neill, the former Goldman Sachs economist who came up with the BRIC acronym. It was commissioned by the policy group BRICS+ Thinking.
Its main points, as reported by Reuters and bne IntelliNews:
- a joint cross-border payments system between member countries is feasible, and central banks should commit to building it
- a common currency would need full convertibility, open capital accounts, a joint monetary authority and countries giving up control of their own interest rates
- members are spread far apart and have shown "no enthusiasm" for handing policy to a shared central bank
The authors said expanding payments in local currencies was "quite feasible, unlike launching a shared currency" (bne IntelliNews).
What is South Africa's official position?
Pretoria has said for nearly two years that it is not working on a BRICS currency. In December 2024 the Department of International Relations and Cooperation (Dirco) said "misreporting" had created the "incorrect narrative" that BRICS was planning a new currency, and that talks were about trading in members' own currencies (Moneyweb).
Reserve Bank governor Lesetja Kganyago has also played the idea down. In February this year Reuters reported that he dismissed a BRICS currency without a common central bank behind it (Reuters).
Russia and India have likewise downplayed a shared currency, and BRICS leaders' declaration after their September 2026 summit in India spoke only of faster, cheaper payments and more use of local currencies (Reuters via MarketScreener).
What is actually being built?
The report looks at five separate ideas, none of which is a coin or note you would use at the till (bne IntelliNews):
| Proposal | What it is | Status |
|---|---|---|
| R5 | A unit of account based on a basket of BRICS currencies, for bonds and loans | Proposal only |
| UNIT | A digital settlement instrument for institutions, backed 40% by gold and 60% by member currencies | Trialled, not officially endorsed |
| BRICS Pay | A link between national payment networks for people and businesses | Prototypes and pilots |
| BRICS Bridge | Settlement between central bank digital currencies | Prototypes and pilots |
| BRICS Clear | Settlement for securities trades | Prototypes and pilots |
Source: bne IntelliNews.
No unified BRICS-wide payments network is running yet.
Why does it keep making headlines?
Mostly because of Washington. US President Donald Trump has repeatedly threatened 100% tariffs on BRICS members if they create a common currency or back an alternative to the US dollar (Reuters via MarketScreener). That makes any talk of a BRICS currency a trade risk for member countries, South Africa included.
Interest in moving away from the dollar has also grown since Western sanctions on Russia after its 2022 invasion of Ukraine (BusinessTech).
What does this mean for your money?
For now, nothing changes. Your salary, savings, debit orders and prices stay in rand, and the Reserve Bank remains the only body that sets South Africa's interest rates. If a local-currency payments link does get built, the most likely effect would be on businesses that trade with China, India or Brazil, which could pay suppliers without converting through dollars first.
FAQ
Is South Africa getting a new BRICS currency?
No. There is no BRICS currency, and South Africa's government has said talks are about trading in members' own currencies, not creating a new one.
Will the rand be replaced?
Nothing announced would replace the rand. Salaries, savings and prices stay in rand, and the Reserve Bank still sets South Africa's interest rates.
What is BRICS Pay?
BRICS Pay is a proposal to link members' national payment networks so people and businesses can pay across borders in local currencies. It is still at the prototype and pilot stage.
Why did Trump threaten BRICS countries?
Donald Trump has repeatedly threatened 100% tariffs on BRICS members if they create a common currency or back an alternative to the US dollar.