Brics nations to have a common currency? Here’s what MEA said
Indian officials have clarified that there is currently no proposal for a common BRICS currency, though member nations will continue exploring trade settlements in local currencies to reduce transaction costs. This approach is intended to complement, not replace, existing global payment systems.
Why it matters
Clarifying the BRICS stance on currency helps manage expectations regarding the group's challenge to the US dollar's global dominance.
There is currently no proposal to introduce a common Brics currency, while discussions on settling bilateral trade in local currencies will continue as a way to reduce transaction costs, Sudhakar Dalela, secretary (economic relations) in the ministry of external affairs, said on Saturday.“There is no proposal in the Brics for a Brics currency, as of now,” Dalela said while briefing the media after the 18th Brics Summit in New Delhi.His comments came as Brics countries continue discussions on strengthening cross-border payments and making trade settlements more efficient among member countries.Local currency settlement to continueDalela said discussions on settling trade in local currencies had been underway in Brics for some time and were not a new initiative.“Discussion on trade settlement in local currency has been underway for some time in Brics; it's not a new subject,” he said.He described local currency settlement as a practical mechanism for bilateral trade and said…
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