Brazil will host leaders from the BRICS nations and their new members in Rio de Janeiro on July 6-7, as the burgeoning bloc faces growing pressure from the US over plans to reduce dollar dependence in trade.

Foreign Minister Mauro Vieira said the summit will include representatives from 20 countries with full or associate membership in the group, which has expanded significantly since its 2009 founding.

"We will make very important decisions for the development of all these countries, for cooperation and for improving the living conditions of all their inhabitants," Vieira said on X.

The Rio summit will come amid heightened tensions after US President Donald Trump threatened 100% tariffs on BRICS nations if they dare to challenge the "mighty" dollar's dominance.

The bloc discussed increasing non-dollar transactions at its October summit in Kazan, Russia.

To this end, Brazil’s President Luiz Inacio Lula da Silva earlier this month floated a new payment system for BRICS trade that focuses on technological solutions like blockchain rather than creating a full-fledged alternative to the dollar.

While Lula has previously spoken about a potential BRICS common currency, the current proposal dials back more radical ambitions, aiming to facilitate direct transactions in local currencies to reduce costs, as Valor’s correspondent in Switzerland, Assis Moreira, wrote this week.

Last month, Brazil's chief BRICS negotiator Eduardo Saboia confirmed to AFP there were no concrete plans to replace the dollar, but rather discussions about using local currencies in trade.

Even China, the bloc's largest economy, is taking a cautious approach to de-dollarisation, preferring gradual change while focusing on maintaining export competitiveness by keeping its currency low.

Russia and Iran are more eager for alternatives to the dollar due to Western sanctions and their open aversion to the international rules-based order.

Under President Luiz Inacio Lula da Silva's leadership, Brazil plans to focus on strengthening cooperation with developing nations and reforming multilateral institutions.

The country's priorities during this year's rotating presidency of the bloc include developing payment mechanisms to encourage intra-bloc trade and investment.

The BRICS+ group, which controls 42% of global central bank FX reserves and accounts for an estimated 37% of global GDP, may have a more immediate impact through foreign exchange reserves and energy trade.

Meanwhile, gold is emerging as a potential alternative, with member states having room to increase their holdings from current levels.

While the US dollar dominance may still last decades, many in the so-called Global South are pushing for change or, at least, trying to make their long-standing grievances heard.

Speaking at an event at the think tank Getulio Vargas Foundation earlier in February, Minister Vieira did not refer to the US by name, but clearly pointed at the current protectionist wave there, stating that it is "more a reminder of the pre-wars US than to the post-1945."

“The worsening of inequalities around the world is triggering different reactions at the current stage. On the one hand, it gives rise to the cause of reforming the world order, of which Brazil has long been an advocate,” Viera said.

“But it also gives rise to the temptation to dismantle the order, often in the very places where it was conceived, and which have benefited most from it. Recent news in the trade field – with a profusion of protectionist measures and unilateral intimidation through tariffs – highlights this process.”

Diverse and growing

BRICS has grown significantly from its 2009 founding by Brazil, Russia, India, and China, with South Africa joining in 2010.

Last year, BRICS added Iran, Egypt, Ethiopia, and the UAE as new members, while Saudi Arabia received an invitation to join.

Indonesia recently became the bloc's 11th member, while a slew of other nations joined as "partner countries," a new designation created at the 2024 Kazan summit.

Turkey, Azerbaijan, and Malaysia have formally applied for membership.

Brazil said partner countries are also invited to the Rio summit and may attend other meetings upon members' consensus.