BRICS Finance Chiefs Seek Stronger Financial Ties, Step Up Push For IMF and World Bank Reforms

New Delhi: Finance ministers and central bank leaders from the BRICS nations have advocated for intensified financial collaboration and comprehensive reforms at the International Monetary Fund (IMF) and World Bank, aiming for greater influence for emerging and developing economies. During meetings in Jaipur and Mumbai, the BRICS officials stated that the growth of the BRICS group has expanded its diversity and global economic sway.

With India set to chair BRICS in 2026, financial cooperation is broadening across payments, infrastructure financing, taxation, customs, and financial stability. Representing nearly half of the world's population, about 40% of global GDP, and 26% of international trade, BRICS claims it is increasingly vital in the global economy.

The grouping advocates for governance changes in Bretton Woods institutions to reflect economic shifts and empower emerging markets with a louder voice. It supports proposed quota increases for the IMF under the 16th General Review of Quotas and calls for significant adjustments under the upcoming 17th review. Chinese President Xi Jinping is set to visit India for the BRICS Summit 2026, where he will meet with Prime Minister Narendra Modi.

The BRICS delegation also supports reviewing the World Bank's shareholding to tackle historical underrepresentation of developing economies. Concerns have been raised about mounting risks such as geopolitical tensions, trade fragmentation, protectionism, inflation, mounting debt, and financial vulnerabilities. The ministers also expressed worries over unilateral tariffs and non-tariff barriers, warning these could disrupt global trade.

The New Development Bank (NDB) was encouraged to broaden its role in financing infrastructure and development initiatives in BRICS and the Global South, with suggestions to broaden local-currency financing, diversify funding sources, and mobilize additional resources. BRICS maintains a cautious approach to de-dollarization, prioritizing payments over a common currency and backs progress on a Multilateral Guarantees initiative to draw private capital and lower project financing costs.

Central banks are also fortifying the BRICS Contingent Reserve Arrangement, a liquidity buffer for members facing financial strain. Cooperation is expanding into insurance, pensions, cybersecurity, and settlement systems, including India's proposed voluntary BRICS Risk Lab at GIFT City.