15 hrs ago

BRICS Has No Common Currency Proposal as Local Settlements Continue

BRICS countries are not currently planning to create one shared currency.

Instead, they are discussing how to use their own currencies when trading with one another.

Sudhakar Dalela said these discussions have been happening for some time.

He said using local currencies could make bilateral trade less expensive.

This plan is meant to work alongside the existing global payment system.

It is not meant to replace that system.

The BRICS Payment Task Force is studying ways to make cross-border payments faster and safer.

The countries also recognise that different members may need different solutions.

Key facts

Common currency: No proposal currently exists to introduce a common BRICS currency.
Local-currency settlement: BRICS members are discussing the use of local currencies for bilateral trade settlements and investments.
Potential benefit: Sudhakar Dalela said local-currency settlement could reduce transaction costs in bilateral trade.
Global payment framework: Local-currency settlement is intended to complement, rather than replace, the global payment and settlement system.
Payment Task Force: The BRICS Payment Task Force is studying interoperability between cross-border payment and messaging channels.
Payment goals: The task force was encouraged to pursue payment solutions that are fast, low-cost, accessible, efficient, transparent, and safe.
India’s chairship: The 18th BRICS Summit followed eight months of work under India’s chairship, including more than 350 meetings.

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