Archive · 1 Sep 2026
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.
India opposes creating a separate BRICS common currency, with Brazil and Russia also downplaying the idea.
BRICS finance officials are discussing local-currency settlements, interoperable payment systems and faster cross-border transactions.
India has proposed linking member countries’ central bank digital currencies for trade and tourism.
The US dollar accounted for 57.13% of global official foreign-exchange reserves in the first quarter of 2026.
The September meetings are expected to focus on payment cooperation rather than launching a new currency.
- Who
- BRICS member countries, including India, Brazil, Russia and China, are involved; India’s Finance Minister Nirmala Sitharaman is chairing the finance ministers’ meeting.
- What
- The group is discussing local-currency settlements, interoperable payment systems and possible cooperation between central bank digital currencies, rather than a common currency.
- When
- Finance ministers meet on September 1-2, 2026, ahead of the leaders’ summit on September 12-13, 2026.
- Where
- The finance ministers’ meeting and leaders’ summit are being held in New Delhi, India.
- Why
- The discussions aim to make cross-border trade and payments easier while reducing reliance on dollar-based channels.
Common Currency Advocates
Local-Currency Settlement Supporters
Preferred financial model
Common Currency Advocates
Some discussion around BRICS has raised the possibility of creating a shared currency, but the articles do not identify a current government commitment to launch one.
Local-Currency Settlement Supporters
India, Brazil and Russia favor expanding the use of existing national currencies and improving payment links instead of creating a new common currency.
Relationship with the dollar
Common Currency Advocates
A new BRICS currency could, in principle, offer a single alternative to dollar-based transactions, but the articles say creating one would require deep markets, convertibility, liquidity and confidence.
Local-Currency Settlement Supporters
Local-currency settlements would reduce the dollar’s role as an intermediary without replacing the wider dollar-based financial system.
- India’s position
- India does not support creating a separate BRICS currency.
- Finance ministers’ meeting
- September 1-2, 2026, in New Delhi.
- Leaders’ summit
- September 12-13, 2026, in New Delhi.
- Main proposal
- Expand trade and payments using members’ existing national currencies.
- Digital-currency proposal
- The Reserve Bank of India has proposed exploring links between BRICS central bank digital currencies.
- Dollar reserve share
- The US dollar represented 57.13% of global official foreign-exchange reserves in the first quarter of 2026.
- Total official reserves
- Global official foreign-exchange reserves totaled about $13.1 trillion in the first quarter of 2026.