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BRICS pushes IMF, World Bank reforms and local-currency trade
BRICS countries want global financial institutions to give developing economies a stronger voice.
They specifically called for reforms at the International Monetary Fund and World Bank.
They also criticized tariffs and other trade restrictions imposed by individual countries.
BRICS members want to use their own currencies more often when trading with one another.
They are also exploring payment systems that can work together across countries.
India’s Unified Payments Interface is being presented as one possible example.
Russia and India are discussing using digital currencies for bilateral trade payments.
The group is trying to make trade payments faster, cheaper and less dependent on the US dollar.
BRICS finance ministers and central bank governors called for reforms to the International Monetary Fund and World Bank.
The group wants emerging economies to have a stronger voice in global financial institutions.
BRICS officials criticized unilateral tariffs and other trade measures they said distort commerce and conflict with World Trade Organization rules.
Members backed greater use of local currencies, interoperable payment systems and digital currencies for cross-border trade.
India will host the BRICS Leaders’ Summit in New Delhi, with Russia, China and Iran expected to attend.
- Who
- Finance ministers and central bank governors from BRICS countries, along with officials including Piyush Goyal, Herman Gref and Masoud Pezeshkian.
- What
- They called for reforms to global financial institutions and promoted local currencies, linked payment systems and digital currencies for trade.
- Where
- The discussions and forum were held in New Delhi, India.
- When
- The finance chiefs issued their statement late Thursday, and the BRICS Business Forum took place Friday; India will host the leaders’ summit this weekend.
- Why
- BRICS members want emerging economies to have greater representation and seek more resilient trade and payment systems outside the US-led financial system.
Key facts
- Institutions targeted for reform
- The International Monetary Fund and World Bank
- BRICS concern
- Members said global financial institutions should become more representative, transparent and accountable.
- Trade criticism
- Finance chiefs objected to unilateral tariffs and non-tariff measures they said distort trade and conflict with World Trade Organization rules.
- Payment proposal
- BRICS supported interoperable, faster, lower-cost, accessible, efficient, transparent and safe cross-border payments.
- Currency approach
- The grouping promoted greater use of national currencies rather than establishing a common BRICS currency.
- India’s digital system
- Piyush Goyal said Unified Payments Interface exceeds 250 billion transactions annually and is accepted in 11 countries.
- Digital-currency discussions
- Sberbank chief executive Herman Gref said Russia’s central bank is working with the Reserve Bank of India on digital-currency settlements for bilateral trade.
Quotes
BRICS finance ministers and central bank governors
Finance chiefs representing BRICS member countries
“Today, it (UPI) is also accepted in 11 countries and 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.”
telegraphindia.com
“With the growing share of emerging market and developing economies in global output and growth, reform of global economic governance remains a consistent BRICS priority”
telegraphindia.com
Sources
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