‘Euro of the South’: BRICS+ currency discussion back ON

A new report released late last month (October 2026) says a BRICS+ currency would significantly reduce reliance on the US dollar for cross-border trading. Back in 2023, ahead of the BRICS Summit in Joburg, the idea of a ‘Euro of the South’ had many asking whether the rand’s days were numbered …

Three years on, a paper drafted in part by Jim O’Neill – the former Goldman Sachs economist who coined the acronym BRICS – says the bloc should press ahead with a joint cross-border payment mechanism.

PRESS ON WITH BRICS+ CURRENCY

The paper was released by a non-profit group called BRICS+ Thinking. However, since 2023, the landscape of the bloc has changed dramatically. New members include Egypt, Ethiopia, Iran, the UAE and Indonesia. Saudi Arabia was invited but its status is still murky. So, the bloc has 10 confirmed members, up from five.

The last summit took place in New Delhi in September, the 18th of its sort. Leaders adopted the 140-paragraph ‘New Delhi Declaration,’ which backed faster, cheaper cross-border payments, local-currency settlement and an expanded payments task force. All it did was stop short of fully endorsing a common BRICS+ currency.

SANCTIONS AND REFORMS ONE THE WAY

Since Western sanctions on Russia (2022 invasion of Ukraine) and, more recently, Iran’s war with the US and Israel, efforts to cut dollar reliance have gathered pace. US president Donald Trump has repeatedly threatened 100% trade tariffs on anyone using an alternative to the dollar.

Nevertheless, O’Neill’s original view hasn’t moved far since 2023. He believes the big issue behind a BRICS+ currency is creating some sort of BRICS central bank. So, while the ‘New Delhi declaration’ didn’t create one directly, it does appear to have laid some of the plumbing necessary for one in the future. Linked payment systems, improved trade in local currencies trade and bank-to-bank mechanisms to improve export within the bloc.

Therefore, nothing is changing for the rand right now. But a BRICS+ currency should have even more appeal, following the US’s removal of South African AGOA privileges. As tariff threats from Washington become more frequent and harder to ignore, South Africa should do all it can to explore other markets for its goods.

But what do you think? Do you think a BRICS+ currency for trading would sense to reduce dollar reliance? Please share your thoughts in the comments section below …