South Africa dismisses BRICS currency union as misinformation, fueling exit talks over economic stagnation, geopolitical risks, and de-dollarization doubts.
South Africa’s government has officially rejected BRICS de-dollarization plans, calling reports of a currency union “misinformation.” DIRCO stated that narratives about alternative currencies were exaggerated, despite member nations advancing digital payment systems with a possible 2026 launch.
The rejection has intensified debate over whether South Africa should leave BRICS. Since 2008, growth has stagnated, while capital and labor restrictions have limited the bloc’s benefits. Competition within BRICS has instead heightened economic pressures.
Technical barriers remain severe. Less than 10% of intra-African settlements use regional systems like PAPSS, despite backing from 15 central banks.
Diplomatic costs also weigh heavily. Aligning with Russia during the Ukraine war strained key relationships, while de-dollarization efforts exposed South Africa to tariff threats.
Analysts argue BRICS disadvantages now outweigh benefits, as over 60% of African debt and exports remain tied to the US dollar.
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