BRICS—an economic bloc comprising Brazil, Russia, India, China, and South Africa—has increasingly gained global attention for its vision of creating a new financial world order. One of the most ambitious moves in recent years is the proposal to introduce a common BRICS currency that could potentially rival the U.S. dollar in international trade and finance.
As of 2025, while the BRICS currency has not been officially launched, discussions and developments around this financial instrument have intensified. This raises a crucial question: how can investors prepare for or invest in the BRICS currency?
1. What is the BRICS Currency?
The BRICS currency is a proposed unified currency that would be used for trade among BRICS nations, bypassing the U.S. dollar and promoting a multipolar global financial system. This new currency would likely be backed by a basket of commodities or currencies from member countries.
Objectives:
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Promote intra-BRICS trade.
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Reduce dependency on the dollar.
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Create a more balanced global monetary system.
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Use digital or blockchain infrastructure for ease and security.
2. Current Status of the BRICS Currency (As of 2025)
As of now:
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No official BRICS currency has been launched.
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Pilot projects are under consideration.
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Central banks from BRICS nations are in talks for cross-border digital payment systems.
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There is rising interest in using national currencies (like INR, RUB, RMB) in trade among BRICS nations.
3. Why is the BRICS Currency Important for Investors?
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Diversification: A BRICS currency-backed asset offers exposure to emerging markets.
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De-dollarization: Global diversification of reserves may affect traditional markets.
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Commodity backing: If BRICS currency is backed by gold or other commodities, it could be more stable and reliable.
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Geopolitical hedge: It can serve as a hedge against Western currency volatility.
4. How to Invest in BRICS Currency (Current Options)
Until the BRICS currency officially launches, direct investment isn’t possible. However, investors can position themselves strategically through the following ways:
a. Foreign Exchange (Forex) Trading
Invest in individual BRICS nation currencies like:
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Indian Rupee (INR)
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Chinese Yuan (CNY/RMB)
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Russian Ruble (RUB)
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Brazilian Real (BRL)
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South African Rand (ZAR)
These can be traded on forex platforms, ETFs, or through forex mutual funds.
b. BRICS Government Bonds
Invest in government securities issued by BRICS nations, which benefit from favorable trade terms and economic collaboration.
c. BRICS-focused Mutual Funds and ETFs
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Emerging market ETFs
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BRICS-specific index funds
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Country-specific funds (e.g., India or China ETFs)
d. Precious Metals
If the BRICS currency is backed by gold or commodities, investing in gold or commodity ETFs may be a good hedge.
e. Central Bank Digital Currencies (CBDCs)
As BRICS countries explore CBDCs, you can follow developments and invest in supporting technologies or blockchain platforms associated with these currencies.
5. How to Prepare for a Future BRICS Currency?
1. Monitor BRICS Summits and Announcements
Stay informed on policy papers, summit outcomes, and official statements.
2. Diversify Currency Holdings
Consider holding a multi-currency portfolio that includes BRICS nation currencies.
3. Invest in Digital Infrastructure
Tech stocks or blockchain ventures in BRICS countries may be critical in the implementation of a digital BRICS currency.
4. Look at Strategic Gold Holdings
If gold becomes part of the backing, demand will rise. Invest accordingly in bullion, ETFs, or mining stocks.
6. Risks of Investing in BRICS Currency
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Geopolitical Instability: Tensions within or outside BRICS can affect value.
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Regulatory Risk: Currency control laws and capital restrictions can impact investors.
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Lack of Transparency: Especially in emerging markets.
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Currency Volatility: BRICS currencies are not as stable as the USD or Euro.
7. Future of the BRICS Currency: What Experts Say
Economists speculate:
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The BRICS currency might initially function like the Euro (used for trade, not national replacement).
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A blockchain-based digital currency is most likely.
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Backing by a commodity basket (gold, oil, rare earth metals) is a strong possibility.
Conclusion
While the BRICS currency remains in its developmental phase, there are several indirect ways to prepare and invest for its potential launch. Whether through currency diversification, investing in BRICS economies, or buying gold, investors can strategically align their portfolios to benefit from the rise of this emerging financial bloc.
Final Thought: Just like early investors in Bitcoin or the Euro reaped benefits by positioning themselves early, a strategic approach to BRICS currency-related investments could yield significant long-term gains.
