Brazil is set to abandon plans for a common BRICS currency, citing pressure from the US and concerns over economic stability. According to government officials, President Luiz Lula da Silva will reject the proposal during the 17th BRICS summit in Rio de Janeiro this July.

The decision comes after US President Donald Trump threatened to impose tariffs on BRICS members if they ditch the US dollar. India, another BRICS member, has also expressed opposition to the common currency idea, instead opting to use the US dollar for cross-border transactions.

Despite this, Brazil aims to reduce its dependency on the US dollar and will provide solutions for ending reliance on the US dollar at the upcoming summit. The 17th summit is scheduled to take place on July 6-7, with the nine member countries in attendance.

The move highlights the divisions within the BRICS alliance, with Russia, China, and Iran aggressively advancing the de-dollarization agenda to uplift their respective economies. Russia and Iran are reeling under pressure due to sanctions and are desperate to trade in local currencies, while China seeks to dominate global finances by pushing the Chinese yuan for trade.

India, on the other hand, is distancing itself from the idea, fearing that China is using BRICS as a stepping stone to advance its global agenda. The cracks in BRICS are wide open, even before the alliance has made the currency a reality.