BRICS Nations Push Local Currency Trade to Cut Dollar Dependence

India urged BRICS nations to settle trade in local currencies on Friday. The move targets a reduction in dependence on the US dollar and the euro. External Affairs Minister S Jaishankar emphasized the need for economic resilience. He stated that the global order is facing volatility and uncertainty. The Indian chairship prioritizes self-reliance and shock absorption.

Commerce Minister Piyush Goyal addressed 2,000 delegates at the BRICS Business Forum. He noted that BRICS accounts for nearly a quarter of global trade. Goyal called for deep, resilient trade with diversified supply chains. He urged members to open markets for raw materials and critical minerals. The goal is to ensure trade does not hinder growth in any member state.

Payment Systems Linkage Proposal

Goyal highlighted the scale of India's Unified Payments Interface. UPI handles over 250 billion transactions annually. This volume exceeds half of the world's total by count. The system is currently accepted in 11 countries. He urged BRICS members to link their payment systems directly. This integration would facilitate trade in each other's local currencies.

Russia is already shifting its settlement methods. Minister Maxim Reshetnikov provided specific data on this trend. Three years ago, dollars and euros made up 85% of Russian export settlements. That figure has dropped to about 11% today. Reshetnikov argued that this shift reduces exposure to external financial pressures. It supports the broader goal of financial sovereignty.

Grain Exchange and Supply Chains

Russia proposed the creation of a BRICS grain exchange. Member states are leading producers and consumers of grain. However, they currently rely on price benchmarks set in other markets. A dedicated exchange would help stabilize food security within the bloc. It would reduce reliance on external pricing mechanisms.

Jaishankar called for dependable logistics and transparent trade practices. He identified digital public infrastructure and artificial intelligence as key opportunities. These technologies can support advanced manufacturing and fintech. The minister stressed the need for energy systems that can cope with disruption. Transition pathways must suit the specific circumstances of each nation.

Global Trade Context and Resilience

The forum addressed the impact of geopolitical conflicts on the economy. Pandemics and climate-related disruptions have added to the complexity. Jaishankar noted that the objective is to absorb shocks while remaining competitive. He listed diversified commercial relationships as a priority. This approach aims to strengthen economic security for all BRICS members.

Goyal urged partner countries to simplify regulations and speed up clearances. He also called for the opening of services markets. Easing professional mobility and recognizing qualifications were part of his request. Supporting agri-tech startups working on food security was another priority. These steps are designed to make supply chains more robust and efficient.

The discussions reflect a broader shift in global trade dynamics. BRICS nations are seeking to create a predictable business environment. This involves building resilient supply chains and linking payment systems. The initiative is reported by GN markets/fx (en-US) as a significant development. It signals a move toward greater economic independence within the bloc.