LETTER: SA should leave Brics

US president-elect Donald Trump’s threat to sanction Brics nations if they embrace a new reserve currency is simply unnecessary (“Trump threatens 100% tariffs on Brics states if dollar undermined”, December 1).

There is no consensus among Brics members on implementing a Brics currency. Russia is clearly leading the charge to offset the collapse of its own currency, but the other Brics powers (notably, China) rely far too much on their own dollar reserves to risk shaking up the global financial order.

There is no benefit for the Brics countries in embracing their own reserve currency, even without Trump levelling threats at the bloc. SA has stated that it would rather conduct trade in local currencies. More prudent, but still foolish.

Global currencies stimulate trade and create far faster and stronger growth than countries having to conduct trade in a mishmash of differing currencies. The dollar, as with the British pound in the past unipolar system, helps countries formulate consistent means of exchange to make trade straightforward and profitable.

China realises this, and that’s why it maintains such vast dollar reserves. It is not going to torpedo its own economy by rejecting the dollar.

That said, SA should rethink its membership in Brics. Trump’s threats may be hot air, and are definitely unnecessary, but in case they are not it is in SA’s best interests to exit the bloc since it does not serve any practical positive purpose in the development of our economy.

Brics is a club of anti-Western states jockeying for power among themselves. We should seek better company.

Nicholas Woode-Smith
Cape Town

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