BRICS nations are actively discussing the development of a common payment system and the use of national currencies for trade, with Indian Foreign Secretary Vikram Misri confirming that intense talks have been underway. Studies and research have been commissioned. Experts have emphasized that creating an independent BRICS payment system is crucial for enhancing economic cooperation and resisting financial crises, marking an irreversible trend toward financial independence from Western systems.
BRICS Nations in 'Intense Discussions' to Develop Common Payment System
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
BRICS Discussing Common Payment System and National Currencies for Trade
BRICS nations are actively discussing the development of a common payment system and promoting the use of national currencies for trade, according to Indian Foreign Secretary Vikram Misri. Speaking on Oct. 21 during a briefing about India’s participation in the BRICS Summit in Kazan, Misri said that while no definitive agreements have been reached, the discussions have been intense.
While no final agreements have been made, the official stressed:
There have been intense discussions.
He emphasized that research has been commissioned on these matters, and some studies have already been presented to BRICS members for further consideration.
Misri pointed out that BRICS countries are focusing on creating systems that would allow settlements in local currencies, particularly for trade transactions. He emphasized:
It is a fact that the countries have stressed the importance of the use of local currencies for settlement purposes, especially as it comes to or as it pertains to trade.
He noted that the strengthening of correspondent banking networks between BRICS nations is seen as an important first step. He added, “There is emphasis on doing this on a bilateral basis, and once there is greater certainty and experience that is gained, to do it on a multilateral basis as well.”
Meanwhile, Gao Jian, an expert from the Center for Comparative Cultural Studies at the Shanghai Institute of Foreign Languages, stressed the importance of establishing an independent payment mechanism among BRICS members. He argued that this would improve the bloc’s ability to resist financial crises and economic pressures. Describing the trend as “irreversible,” he opined:
Creation of the independent mechanism of currency payments among BRICS countries will facilitate progressing of economic and trade cooperation within the BRICS mechanism and increase the capability of member-countries to withstand financial crises and economic pressure.
Gao noted that BRICS nations collectively represent 45% of the global population and 36% of the world’s GDP by purchasing power parity, which surpasses the G7 countries. According to him, BRICS members include major economies and significant energy resources, positioning the group to play a key role in reforming the global financial system. “These factors provide for the important position of the BRICS cooperation mechanism in the sphere of reforms of the global financial systems and support of the international economic order,” he said. Gao acknowledged that there are numerous technical options to be considered in developing the mechanism, adding that “the independent mechanism of currency payments cannot be created at once and it should be the gradual development process.”
