2 hrs ago
BRICS Explores Faster Local-Currency Payments Ahead of 2026 Summit
BRICS countries want to make it easier and cheaper to send money across borders.
They are discussing ways to connect their instant payment systems.
They are also considering connecting digital currencies issued by their central banks.
India’s central bank says these systems could help businesses, travelers and investors.
Countries might sometimes pay each other directly in their own currencies instead of using the US dollar.
This could lower the need for dollars in some transactions, but it is not officially a plan to eliminate the dollar.
India has not proposed a common BRICS currency.
The countries still need to solve technical, political and regulatory problems.
They also need a way to handle situations where one country sells much more to another than it buys.
BRICS members are discussing links between fast-payment systems and central bank digital currencies to reduce cross-border payment costs.
Reserve Bank of India Governor Sanjay Malhotra said several payment mechanisms are being considered, including fast-payment and CBDC interoperability.
The Reserve Bank of India recommended placing BRICS CBDC links on the agenda for the 2026 summit to support trade, finance and tourism payments.
India is promoting the international use of the rupee and other local currencies through arrangements including Special Rupee Vostro Accounts.
The proposals could reduce some transactions’ reliance on the US dollar, but India says they are not intended to create a BRICS currency or replace the dollar.
- Who
- BRICS member countries, their finance ministers and central bank governors, and the Reserve Bank of India, led in this discussion by Governor Sanjay Malhotra.
- What
- Members are exploring interoperable fast-payment systems, linked central bank digital currencies and greater use of local currencies for cross-border settlements.
- Where
- The initiative concerns payments among BRICS economies; Sanjay Malhotra discussed it in Mumbai.
- When
- The discussions are ongoing, with India recommending that CBDC links be included on the agenda for the 2026 BRICS Summit.
- Why
- The stated goal is to make cross-border payments faster, cheaper, more accessible, efficient, transparent and safe while supporting trade, investment and tourism.
Key facts
- Key proposal
- Link BRICS fast-payment systems and potentially connect national central bank digital currencies.
- 2026 agenda
- The Reserve Bank of India recommended discussing BRICS CBDC links at the 2026 summit.
- Local-currency use
- India is promoting the rupee and other national currencies for cross-border trade and payments.
- Existing arrangements
- India has bilateral local-currency settlement arrangements with the UAE, Indonesia, Maldives and Mauritius.
- Rupee framework
- Special Rupee Vostro Accounts support international trade settlement through the rupee alongside freely convertible currencies.
- Main challenge
- Persistent trade imbalances could leave countries holding currencies they have limited opportunities to spend or invest.
- Dollar implications
- The measures could reduce dollar use in some bilateral transactions, but they are not presented as a plan to eliminate the dollar.
Quotes
Sanjay Malhotra
Reserve Bank of India Governor
“Cross-border payments is an area of interest for all of us, including the BRICS, because we feel there is a lot of scope for reducing cost.”
wionews.com
Sources
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