1 hr ago
BRICS explores local-currency payments to reduce dollar dependence
BRICS countries want to make it easier to trade with one another without always using the US dollar.
They are exploring ways to connect their national payment systems.
These systems include India's UPI, China's CIPS, Brazil's Pix, and Russia's SPFS.
The countries also want to explore central bank digital currencies and a possible BRICS payment platform.
This could allow payments to be made directly in currencies such as the rupee, ruble, or yuan.
The plan is partly meant to reduce exposure to Western financial restrictions and changes in US monetary policy.
However, the countries have not yet created one fully unified payment system.
They still need to resolve technical, security, and regulatory differences.
The 18th BRICS summit in New Delhi is scheduled for September 12–13, with India as chair.
BRICS members are considering links between national payment systems, CBDCs, and other cross-border payment tools.
The proposed network could connect India's UPI, China's CIPS, Brazil's Pix, and Russia's SPFS.
The initiative aims to settle trade in national currencies and reduce reliance on the US dollar and SWIFT.
No unified BRICS payment system exists yet; interoperability, security, standards, and regulatory differences remain unresolved.
- Who
- BRICS member countries, including India, Russia, China, and Brazil.
- What
- A proposed effort to connect national payment and financial messaging systems for cross-border transactions.
- Where
- The summit is scheduled for New Delhi, India; the prototype was demonstrated in Moscow.
- When
- The 18th BRICS summit is scheduled for September 12–13; a related prototype was demonstrated in October 2024.
- Why
- To reduce dependence on the US dollar and Western-dominated financial infrastructure, lower transaction costs, and limit vulnerability to sanctions and currency volatility.
Key facts
- Summit
- The 18th BRICS summit is scheduled for September 12–13 in New Delhi, with India as chair.
- Payment systems
- The proposed links could involve India's UPI, China's CIPS, Brazil's Pix, and Russia's SPFS.
- Current status
- No fully unified BRICS payment system exists yet.
- Prototype
- A proposed open-source, decentralised messaging-system prototype was demonstrated in Moscow in October 2024.
- Local-currency financing
- The New Development Bank's 2022–2026 strategy targets 30 per cent of commitments in members' national currencies, subject to market conditions.
- Main obstacles
- Message standardisation, security protocols, and differing national regulatory frameworks remain unresolved.
Quotes
BRICS Foreign Ministers
Participants in the April 2025 BRICS Foreign Ministers' statement
“continuously expanding local currency financing and strengthening innovation in investment and financing tools.”
wionews.com
Sources
Related news
BRICS Leaders Eye Local-Currency Trade, Not Common Currency
BRICS Focuses on Local-Currency Payments, Not a Common Currency
India to Host Landmark BRICS Sovereign Capital Summit in Delhi
Finance Minister, RBI Governor co-chair BRICS meet on payments, stability
India rules out common BRICS currency, Goyal says
