BRICS treads carefully on de-dollarisation: Main focus on payments, not a common currency
There is no mention of a common BRICS currency or a formal call for replacement of the US dollar. Instead, the document sticks to the more incremental, technocratic language the bloc has used since Rio and Kazan: interoperable payment systems, local-currency settlement, and voluntary cooperation among members who "respect national priorities."
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.
Also reported by 4 other outlets
- Brics nations to have a common currency? Here’s what MEA said timesofindia.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
