BRICS nations eye cross-border payments, local currency trade and investment

The BRICS nations are exploring cross-border payments, local currency trade, and investment opportunities to promote efficiency and cooperation. At the BRICS Business Forum, Commerce Minister Piyush Goyal encouraged member countries and partners to link payment systems and trade in each other's currencies, highlighting the immense potential for deeper cooperation and diversified supply chains.

He emphasized that trade should not hinder growth and well-being. The BRICS Payment Task Force (BPTF) has been tasked with continuing discussions to facilitate practical solutions for cross-border payments among BRICS countries, with a focus on fast, low-cost, accessible, efficient, transparent, and safe systems. This comes after Reserve Bank of India Governor Sanjay Malhotra mentioned the possibility of linking fast payment systems and Central Bank Digital Currencies among BRICS members.

The push for local currencies and interoperability of payment channels comes amid ongoing trade talks between India and the US, with the US threatening additional tariffs on BRICS members. Despite the lack of a dominant alternative to the US dollar, BRICS nations are diversifying towards other currencies like the rupee and yuan, with India settling more than six times the previous year's rupee imports by mid-2026-27.