BRICS Rejects Common Currency Plan for Now

There is no proposal for a common BRICS currency as of now. India’s Ministry of External Affairs confirmed this on Saturday. The clarification came after recent summit discussions. Secretary (Economic Relations) Sudhakar Dalela made the statement. He addressed questions regarding a unified monetary unit for the bloc. The ministry denied that members agreed to create a single currency. This position aligns with the official joint declaration. The document emphasizes bilateral trade mechanisms instead.

The priority is settling trade in local currencies. This approach aims to reduce transaction costs. Dalela stated that efforts focus on intra-BRICS trade. The goal is to engage the global business community. These initiatives are developed bilaterally or within the group. The remarks followed India’s call to link payment systems. This push occurred one day prior to the clarification. The strategy avoids a monolithic monetary union.

Payment system interoperability leads effort

The joint declaration acknowledges work by the BRICS Payment Task Force. It explores cross-border payment channel interoperability. The text cites guidance from the Kazan and Rio Declarations. It promotes trade settlements in local currencies. The bloc respects national priorities in this process. There is no one-size-fits-all approach noted. The BPTF must continue building practical solutions. These solutions should be fast and low-cost.

Commerce Minister Piyush Goyal urged nations to link systems. He called for trade in each other’s local currencies. This happened at the BRICS Business Forum. The forum took place on Friday. The declaration supports these pragmatic solutions. It seeks efficient cross-border payment mechanisms. Transparency and safety are also required. These standards guide the ongoing technical work.

Russia shifts trade settlement currency mix

Russian officials report a shift in settlement currencies. Maxim Reshetnikov said dollar and euro use dropped. Three years ago, these currencies totaled 85% of settlements. For Russian exports, the figure now stands at about 11%. This indicates a major structural change. Moscow is increasing local currency trade. Reshetnikov proposed a BRICS grain exchange. Member countries are leading producers and consumers.

The proposal addresses reliance on external price benchmarks. Members still depend on other markets for pricing. A dedicated exchange could reduce this dependency. Iran’s President Masoud Pezeshkian also spoke. He urged increased use of national currencies. He called for greater economic integration. These steps aim to overcome sanctions. Sanctions have intensified in recent months. This context drives the current policy push.

Official stance clarifies monetary boundaries

The MEA response closes the door on immediate currency union. Dalela explicitly stated there is no proposal. He emphasized the current focus on trade settlement. The ministry is trying to develop these frameworks. These efforts are bilateral or within BRICS. The global business community is the target audience. Transaction cost reduction is the primary metric. This strategic choice reflects current geopolitical realities.

The declaration underscores the lack of a single currency. It highlights the work of the BPTF. The bloc acknowledges the study of payment channels. It supports local currency settlements for investments. National priorities remain a key constraint. The approach is pragmatic rather than idealistic. This stance is reported by GN markets/fx (en-US). It provides a clear baseline for future analysis.