BRICS Nations Plan to Trade Using Local Currencies

BRICS countries are pushing to use local currencies for trading. This move aims to cut transaction costs and boost trade among member countries.

Shri Dalela, who is the secretary of Economic Relations at India’s Ministry of External Affairs, shared this news during an interview at the 18th BRICS Summit in New Delhi on Saturday.

The News Agency of Nigeria (NAN) says BRICS is a group of major emerging economies that work together on economic, political, and development matters.

Originally, BRICS stood for Brazil, Russia, India, China, and South Africa. Now, it has grown. By 2026, BRICS will have 11 full members: Brazil, Russia, India, China, South Africa, and Iran. The new members are Egypt, Ethiopia, the United Arab Emirates, Saudi Arabia, and Indonesia.

Mr Dalela mentioned that the talks about using local currencies for trade have been ongoing among BRICS members. The goal is to develop ways to make trading easier.

“Local currency settlement is a practical mechanism to reduce transaction costs, to bring bilateral trade,” he said.

He added that using local currencies is seen as a way to support the current global payment system.

Mr Dalela said BRICS countries are looking into agreements and methods within the BRICS setup to tackle trading issues.

The wider aim is to help trade, strengthen ties with the global business scene, and lower transaction costs.

He made it clear that there is no plan yet for a common BRICS currency.

“There is no proposal for fixed currency as of now,” he said.

Mr Dalela explained that the discussions on local currency settlement and other payment methods are part of ongoing efforts to strengthen trade and financial ties among BRICS nations.