1 hr ago

BRICS Summit to Prioritise National Currencies, NDB Capital Role

BRICS countries are planning to discuss how to use their own currencies more when trading with one another.

This could reduce their reliance on major international currencies.

It may also help protect their economies when global markets become unstable.

Finance ministers and central bank leaders will meet in Mumbai to prepare proposals.

The countries will also discuss giving the New Development Bank a bigger role.

The bank could help make development projects safer and more attractive to private investors.

More private investment could support infrastructure and other projects in BRICS countries.

Leaders are also expected to discuss financial risks and changes in the world economy.

Key facts

Main issue: Greater use of national currencies for cross-border payments and mutual settlements.
Development bank: The New Development Bank may play a larger role in attracting private capital.
Finance officials’ meeting: BRICS Finance Ministers and Central Bank Governors are meeting in Mumbai on September 9-10.
Policy objective: Strengthen financial cooperation and improve the international monetary and financial system.
Economic concern: Emerging economies face capital flight and currency pressure during external shocks.
Potential benefits: National-currency use could support intra-BRICS trade and investment while reducing exposure to external shocks.
Other agenda items: Financial risk management, liberalisation, and global and regional economic trends.

financialexpress.com · 1 hr ago