BRICS nations are moving to make cross-border payments easier and expand the use of local currencies for trade and investment, as the grouping seeks to strengthen economic ties and facilitate greater intra-BRICS trade.
The grouping is working on the cross-border interoperability of payment and messaging channels, while discussing ways to promote trade settlements and investments using BRICS local currencies.
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The focus is primarily on facilitating greater intra-BRICS trade rather than creating a common currency, officials said.
Indian Ambassador to Russia Sudhakar Dalela said local-currency settlement could offer a practical way to lower the cost of trade and make cross-border transactions more efficient.
“Local currency settlement is a practical solution to reduce cost of trade,” Dalela said, while clarifying that there is no proposal at present to create a common BRICS currency.
BRICS is also developing a framework to boost trade and settlements in local currencies, with the broader objective of making cross-border payments faster, lower-cost, more accessible, efficient, transparent and safe.
The grouping is also seeking greater cooperation on digital public infrastructure and a more sovereign and self-reliant digital ecosystem.
The New Development Bank, the bloc’s multilateral lending institution, is also set to expand local-currency financing to mobilise resources and support infrastructure investment across the Global South.
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Separately, China and Russia reiterated their support for India and Brazil to play a greater role in global institutions, including the United Nations Security Council.
The push for local-currency settlements comes as BRICS seeks to expand intra-group economic cooperation and build payment mechanisms that can support growing trade and investment flows among its members.
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