Mashatile: SA cautious about BRICS currency plans
Deputy President Paul Mashatile says South Africa remains cautious about adopting a common BRICS currency, given the country's economic reliance on the US dollar.
He delivered a keynote address at the National Economic Development and Labour Council (NEDLAC) annual labour school in Pretoria on Tuesday.
Mashatile acknowledged that South Africa had taken part in discussions around the potential BRICS currency but stressed that no firm decision had been made.
“We as part of BRICS are obviously part of that discussion. I will not be able to say today exactly when are we going to take a firm decision on this matter because I'll tell you why.
The South African economy is largely embedded on the dollar, very much so. So we have to be careful when we discuss this question,” he said.
The proposed currency aims to create a unified monetary system to facilitate trade among BRICS nations and reduce dependency on the US dollar.
These conversations gained traction as BRICS countries—Brazil, Russia, India, China, and South Africa—sought to enhance their economic collaboration and challenge the dominance of Western financial institutions.
A common currency is seen as a way to bypass the dollar in trade settlements, particularly amid rising geopolitical tensions and sanctions that target dollar-based transactions.
While the idea of a BRICS currency is ambitious, no concrete steps have been taken to implement it yet.
The proposal remains in the discussion phase, with member countries exploring its feasibility and implications.
Mashatile highlighted that South Africa conducts significant trade with Western nations, including the United States and Europe, where transactions are predominantly dollar-based.
While recognising the potential benefits of reducing reliance on the dollar, he warned against any hasty moves that could destabilize the economy.
“The issue of whether we can immediately move away from the dollar and introduce a new currency is something we may not be able to do at this stage. We don’t want to collapse our economy. We need to tread carefully,” he added.
While the proposal remains in the discussion phase, Mashatile emphasised the importance of strengthening African currencies and fostering greater collaboration across the continent.
“We would like to see countries in the continent strengthening their own currencies and collaborating with us,” he said.
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