BRICS Focuses on Local-Currency Payments, Not a Common Currency

BRICS countries are discussing how to make it easier to trade using their own currencies.

India says the group should not create one new currency for everyone.

Brazil and Russia have also said that a shared currency is not currently the main plan.

Instead, countries could pay each other directly with currencies such as the rupee, yuan, rouble or dirham.

This could reduce the number of times dollars are used in a trade transaction.

India has also suggested connecting the countries’ official digital currencies.

The plan would make payments faster and easier, but it would not replace the dollar-based financial system.

The dollar still makes up more than half of official foreign-exchange reserves.

BRICS finance officials will discuss these ideas in New Delhi before the leaders’ summit.