Brics nations to have a common currency? Here’s what MEA said
Brics nations are discussing local currency trade settlements to reduce transaction costs. There is currently no proposal for a common Brics currency among member states. This initiative aims to complement existing global payment systems and improve trade efficiency. Leaders also addressed trade barriers and the need for a strong WTO. Discussions followed eight months of work under India's Brics…
The BRICS nations have maintained a cautious approach towards de-dollarisation, focusing on enhancing payment systems rather than establishing a common currency. At a recent meeting, the bloc emphasized the work of the BRICS Payment Task Force (BPTF) in exploring practical solutions for more efficient cross-border payments. Both Iranian President Masoud Pezeshkian and Russian President Vladimir Putin highlighted the importance of moving away from the dollar during the BRICS Business Forum in New Delhi.
Pezeshkian called for the development of a more resilient network of trade and investment, while Putin advocated for the creation of a new, sustainable platform for global growth. The joint statement from the finance ministers and central bank governors of BRICS nations supports the ongoing efforts of the New Development Bank to mobilize resources, expand local currency financing, and strengthen project preparation facilities.
However, experts stress that replacing the dollar will be challenging due to the depth and liquidity of US financial markets, the role of the dollar in global trade, and the size of dollar-denominated financial markets.
Written by urgent.news from The Economic Times - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- BRICS treads carefully on de-dollarisation: Main focus on payments, not a common currency economictimes.indiatimes.com
- BRICS Keeps De-Dollarisation On A Cautious Track, Payments Take Priority Over Common Currency freepressjournal.in
- No proposal for common BRICS currency ‘as of now’, says MEA hindustantimes.com
- Bank Indonesia promotes local currency use among BRICS nations en.antaranews.com
