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BRICS Pushes Local-Currency Trade and Faster Cross-Border Payments
BRICS countries want to make it easier and cheaper to pay each other across borders.
They are discussing systems that could connect countries’ fast payment networks.
They also want businesses to use local currencies, such as the rupee or yuan, for some trade.
India’s Piyush Goyal suggested connecting payment systems and expanding digital trade.
The group says this would give countries more choices and make payments more efficient.
It says it is not trying to remove the US dollar from global trade.
US President Donald Trump worries that BRICS could weaken the dollar’s leading role.
The dollar is still used much more than the yuan in the SWIFT payment system.
BRICS members called for practical, efficient cross-border payment solutions and greater use of local currencies.
India’s Commerce Minister Piyush Goyal urged members to link payment systems and trade in one another’s currencies.
The BRICS Payment Task Force is studying interoperability among payment and messaging systems, including fast-payment networks and digital currencies.
BRICS countries say they seek a viable alternative to improve payment efficiency, not to replace the US dollar.
The US dollar accounted for 50.99% of SWIFT payments in July, while the Chinese yuan accounted for 3.1%.
- Who
- BRICS member and partner countries, their finance ministers and central bank governors, and India’s Commerce Minister Piyush Goyal.
- What
- The grouping is examining faster, cheaper and safer cross-border payments, linked payment systems and increased settlement in local currencies.
- Where
- The finance officials’ meetings took place in Jaipur and Mumbai, India.
- When
- The proposals were discussed ahead of the BRICS Leaders’ Summit; finance officials met in Jaipur on August 12-13 and in Mumbai on Thursday, while Goyal spoke on Friday.
- Why
- Members want more efficient and diversified payment and trade arrangements while respecting national priorities; critics and US President Donald Trump are concerned about possible effects on the dollar’s global role.
BRICS Payment Diversification
Concerns About Dollar Dominance
Purpose of local-currency payments
BRICS Payment Diversification
BRICS members say local-currency settlements and linked payment systems can make international payments faster, cheaper, more accessible, transparent and safe.
Concerns About Dollar Dominance
US President Donald Trump argues that BRICS is seeking to weaken or replace the US dollar’s position as the global standard.
Practical viability
BRICS Payment Diversification
Supporters say payment-system interoperability and local-currency trade can diversify supply chains and offer a viable alternative for trade and investment.
Concerns About Dollar Dominance
Critics point to the yuan’s small share of global SWIFT payments—3.1% in July—compared with the dollar’s 50.99% share.
India’s rupee settlements
BRICS Payment Diversification
India’s increased use of the rupee for imports is presented as evidence that local-currency settlement is expanding, with Russian oil purchases cited by experts as a factor.
Concerns About Dollar Dominance
The article notes that local-currency use remains uneven and that there is no one-size-fits-all approach among BRICS countries.
Key facts
- Key proposal
- Link BRICS payment systems and promote trade and investment in local currencies.
- Payment Task Force
- The BRICS Payment Task Force is continuing work on practical cross-border payment solutions.
- India’s system
- India’s Unified Payments Interface is used in about 10 countries.
- Rupee-settled imports
- India settled 8.14% of its imports, worth Rs 1.58 lakh crore, in rupees during the first three months of 2026-27.
- Previous-year comparison
- Rupee-settled imports in April-June 2025 totaled Rs 25,402 crore.
- SWIFT shares in July
- The US dollar accounted for 50.99% of payments on SWIFT, compared with 3.1% for the yuan.
- BRICS position
- BRICS countries say they seek a viable alternative to improve efficiency, not to replace the US dollar.
Quotes
BRICS finance ministers and central bank governors
Officials representing BRICS finance ministries and central banks
“We encourage the BPTF (BRICS Payment Task Force) to continue discussions, building on the ongoing work, to facilitate practical solutions for cross-border payments among BRICS countries, which are fast, low-cost, more accessible, efficient, transparent and safe.”
indianexpress.com
“I would urge the BRICS member countries and partner countries to link our payment systems, trade in each other’s local currencies, make digital trade global and build together for the future emerging technologies.”
indianexpress.com
Sources
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