BRICS Summit Targets Lower Costs for Cross-Border Payments
The 18th BRICS Summit in New Delhi produced a declaration mandating faster and cheaper payment systems. Leaders agreed to expand the use of local currencies to reduce reliance on dominant global reserves.
BRICS leaders adopted a declaration in New Delhi calling for cross-border payments to become faster, cheaper, and safer. The group aims to enhance interoperability between national payment and messaging systems. This move seeks to deepen economic cooperation among member states.
The New Delhi Declaration instructs the BRICS Payment Task Force to continue developing practical solutions. The task force is currently studying the interoperability of payment channels. It is also evaluating methods to promote trade settlements using local currencies.
Expansion of local currency trade
Iranian President Masoud Pezeshkian urged members to reduce dependence on dominant currencies. He advocated for mechanisms to manage currency risks and facilitate reciprocal settlements. Pezeshkian stated that expanding national currency use is a critical step for the bloc.
The proposal includes a larger role for the New Development Bank in financing infrastructure. The bank would provide local-currency financing and guarantees to attract private capital. This approach aims to stabilize trade flows within the group.
New reinsurance capital proposal
A joint BRICS reinsurance company was proposed with initial capital of USD 10 billion. This entity would cover risks linked to major infrastructure and energy projects. The fund would support private capital participation in high-risk sectors.
According to GN markets/fx (en-US), this financial instrument addresses specific sectoral risks. It complements broader efforts to strengthen insurance capacity within the bloc. The structure allows for shared risk management across member nations.
Support for small business credit
Leaders welcomed guiding principles for credit assessment of export-oriented small and medium enterprises. The Jaipur Consensus will study an invoice discounting mechanism. This tool helps businesses unlock working capital for international trade.
Technical work continues on a New Investment Platform and settlement infrastructure. These measures aim to build resilient global value chains. The declaration emphasizes respecting national priorities without a one-size-fits-all approach.
