Speculation around a potential BRICS common currency has dominated global economic discussions in recent months. However, Brazilian President Luiz Inácio Lula da Silva, in an exclusive interview with India Today, has firmly dismissed these claims. He clarified that there are no debates or proposals within BRICS to create a new currency, while highlighting the possibility of India and Brazil strengthening trade ties by reducing reliance on the US dollar.
BRICS Currency Speculation: Lula’s Pushback
- Lula stated unequivocally that “there is no proposal to create the BRICS currency”.
- He emphasized that the idea of a common currency is neither on the table nor under discussion among BRICS members.
- This statement directly counters months of speculation about BRICS working toward de-dollarisation through a unified currency.
India–Brazil Trade Beyond the Dollar
- While rejecting the BRICS currency narrative, Lula suggested that India and Brazil can trade using their own currencies.
- He noted that reducing dependence on the US dollar in bilateral trade is possible, but would require time, careful planning, and gradual implementation.
- Lula highlighted that such cooperation could foster growth, technology exchange, and stronger trust between the two economies.
Strategic Importance of India–Brazil Relations
- Lula’s visit to New Delhi with the largest-ever Brazilian delegation signals a decisive expansion in bilateral ties.
He stressed that as two of the world’s largest democracies and dynamic economies, India and Brazil cannot remain distant.
Bilateral trade reached record levels in 2025, but Lula believes the partnership still has untapped potential.
Conclusion
Brazilian President Lula’s remarks put an end to speculation about a BRICS common currency, clarifying that the bloc is not pursuing such a plan. Instead, his focus lies on strengthening India–Brazil trade relations by exploring alternatives to dollar-based transactions. This pragmatic approach underscores a shift toward regional cooperation and economic diversification, while avoiding the complexities of creating a unified BRICS currency.
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