BRICS advances 3 new payment systems worth billions for local trade

BRICS foreign ministers met in Rio de Janeiro this week to discuss accelerating the shift away from reliance on dominant global currencies.

The official Chair’s Statement from the Meeting of BRICS Foreign Ministers emphasised expanding the use of local currencies in trade and financial transactions within the bloc and with partner countries.

The meeting, held under Brazil’s 2025 BRICS Chairship, focused on enhancing economic sovereignty and regional cooperation through new monetary tools.

Ministers highlighted the importance of increasing local currency use in trade settlements among BRICS nations and their partners.

They referenced paragraph 66 of the Kazan Declaration, which instructs finance ministers and central bank governors to explore local currencies, payment instruments, and platforms.

This includes assessing the feasibility of a BRICS cross-border payments initiative called BRICS Clear and expanding the bloc’s reinsurance capacity.

These efforts aim to deepen financial integration among BRICS members and reduce vulnerabilities to external economic shocks.

The group also reaffirmed its commitment to fostering investment within BRICS and across the Global South.

The statement noted the importance of expanding local currency financing and strengthening innovation in investment and financing tools.

It acknowledged plans to create new investment platforms to boost flows into BRICS countries and Global South mechanisms.

This strategy aligns with broader goals of financial inclusivity, economic resilience, and a multipolar economic system reflecting emerging markets’ interests.

The focus on local currencies and financial platforms complements ongoing discussions about BRICS-led alternatives to existing global payment systems.

Ministers are expected to present concrete proposals for BRICS leaders to review.

These developments build on prior declarations and institutional frameworks designed to accelerate intra-bloc economic collaboration.