BRICS Currency? India Says ‘No Proposal’ As Bloc Pushes Local Trade Settlements

New Delhi: There is no proposal at present to introduce a common BRICS currency, while discussions on settling bilateral trade in local currencies will continue as a practical 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 come as BRICS countries continue discussions on strengthening cross-border payments and reducing transaction costs in trade among member countries, without moving towards a common currency at present.
“Discussion on trade settlement in local currency has been underway for some time in BRICS; it's not a new subject,” Dalela said.

He said local currency settlement was being viewed as a practical mechanism for bilateral trade and was not intended to replace the existing global payment and settlement framework. “We believe local currency settlement is a practical mechanism to reduce transaction cost in bilateral trade. This has been encouraged as complementary to global payment and settlement system, improving overall global trade across nations,” he said.

The New Delhi Declaration also acknowledged ongoing discussions on promoting trade settlements and investments using BRICS local currencies, while respecting national priorities and recognising that there is no one-size-fits-all approach. 

The declaration said the BRICS Payment Task Force (BPTF) has been studying cross-border interoperability of payment and messaging channels and encouraged it to continue work towards practical solutions for payments that are “fast, low-cost, more accessible, efficient, transparent, and safe.”

The focus on local currency settlements is part of the wider effort within BRICS to make cross-border trade and payments more efficient. However, Dalela's comments make clear that this work is not currently linked to the creation of a single BRICS currency. Additionally, Dalela said the 18th BRICS Summit followed eight months of work under India's chairship, with more than 350 meetings held across thematic clusters, ministerial meetings, working groups, business sessions and other initiatives.

He said the summit's discussions also covered the impact of ongoing conflicts and economic uncertainties, with leaders underscoring the importance of dialogue, diplomacy and peaceful resolution of differences.