US suffers from dollar phobia, not Brics: South Africa envoy Anil Sooklal
South Africa's envoy to India, Anil Sooklal, stated that BRICS is focused on expanding local-currency trade and building alternative payment infrastructure, not creating a shared currency, attributing the push to US policies rather than a 'dollar phobia' from BRICS.
Intelligence analysis by Gemini 2.5 Flash
Anil Sooklal, South Africa's high commissioner to India, asserts that BRICS nations are not pursuing a common currency but rather aiming to facilitate trade in local currencies and establish independent payment systems. He argues this initiative stems from emerging economies' discomfort with the US's use of tariffs, sanctions, and its dominance of the global financial system, suggesti…
Imagine a group of friends who want to trade their toys, but everyone has to use one specific type of coin, and the person who makes those coins can sometimes stop others from using them. These friends, called BRICS, are now saying, "Let's use our own different coins when we trade with each other, and even make our own way to swap toys without needing that one special coin." They feel the country that makes the special coin is worried about losing its power, not that BRICS is trying to get rid of it just for fun.
Analysis
Anil Sooklal
South Africa's high commissioner to India, Anil Sooklal, has offered a pointed critique of the prevailing narrative surrounding the BRICS bloc's economic ambitions. He firmly dismisses the notion that BRICS is actively working towards a common currency, clarifying that the group's primary focus is on practical steps such as expanding trade in local currencies and developing independent payment mechanisms. Sooklal frames this strategic shift not as an aggressive challenge to the US dollar, but as a defensive response by emerging economies to what they perceive as the weaponization of trade and finance by the United States.
Sooklal's remarks underscore a growing sentiment among developing nations regarding the vulnerabilities inherent in a dollar-dominated global financial system. He explicitly states that the 'dollar phobia' lies with the US, not BRICS, suggesting that American policies, including tariffs and sanctions, are inadvertently accelerating the interest in financial alternatives. His strong assertion that the US's weaponization of trade causes more harm than physical conflict highlights the depth of concern among these nations about economic coercion and the need for greater financial autonomy.
New Delhi Declaration
The unanimous adoption of the New Delhi Declaration at the recent BRICS summit is presented by Sooklal as a significant diplomatic achievement, particularly given the diverse geopolitical interests and internal differences among the 11 member states. He credits months of quiet Indian diplomacy and sustained engagement with key BRICS capitals for securing this consensus, rather than a last-minute compromise. This outcome stands in stark contrast to the G20, from which Sooklal suggests no declaration should be expected this year, thereby highlighting the effectiveness of BRICS's internal processes.
This declaration signifies a collective commitment among BRICS members to adapt to a more fragmented and uncertain global order. It reflects a shared vision for building bridges and fostering cooperation in a world where the post-war rules-based order is perceived to be collapsing. The ability of BRICS to achieve such unity, despite its expanded membership and varied national interests, speaks to a growing cohesion driven by common concerns about global economic stability and sovereignty.
Narendra Modi
Prime Minister Narendra Modi's personal diplomatic efforts are highlighted as a crucial factor in bridging divisions and securing the unanimous New Delhi Declaration. Sooklal specifically credits Modi's excellent relationships with Russian President Vladimir Putin and Chinese President Xi Jinping, alongside India's strong ties with Iran and the UAE, for facilitating consensus within the diverse grouping. This underscores the importance of individual leadership and bilateral relations in multilateral forums.
Modi's role as chair of the summit is described as critical, requiring creativity and sustained pressure to achieve a unified outcome. The success of the declaration is seen as clear evidence of India's effective chairship and its ability to navigate complex geopolitical landscapes. This diplomatic prowess not only strengthens India's standing within BRICS but also positions it as a key player in shaping the future of global economic and political cooperation, particularly in the context of developing alternative financial infrastructures like India's digital public infrastructure, UPI.
Key points
- BRICS is focused on expanding local-currency trade and building alternative payment infrastructure, not creating a common currency.
- South Africa's envoy Anil Sooklal attributes the push for alternatives to US policies, including tariffs and sanctions, rather than BRICS having 'dollar phobia'.
- The New Delhi Declaration was unanimously adopted, a feat credited to months of Indian diplomacy and engagement with member countries.
- India's Prime Minister Narendra Modi's relationships with leaders like Putin and Xi were crucial in bridging differences within the bloc.
- BRICS sees its efforts as a response to a changing, fragmented world and the perceived collapse of the post-war rules-based order.
The BRICS initiative to expand local-currency trade and develop alternative payment systems could lead to greater economic autonomy for member nations, reducing their vulnerability to external financial pressures and sanctions. This could foster more resilient intra-bloc trade and investment, potentially accelerating economic growth and stability across emerging economies.
The push for de-dollarization and the creation of parallel financial systems could exacerbate global economic fragmentation, leading to increased transaction costs and inefficiencies in international trade. It might also deepen geopolitical divides, creating a more complex and potentially unstable global financial landscape if new systems lack widespread trust or robust governance.
