BRICS nations agree to boost trade, financial settlement in local currencies

PTI, Oct 23, 2024, 7:59 PM IST

Credit: X / @narendramodi

Kazan: BRICS nations on Wednesday agreed to strengthen trade and financial settlement in local currencies, study feasibility of an independent cross-border settlement and depositary infrastructure, and a BRICS reinsurance company.

The leaders also agreed to jointly develop the New Development Bank into a new type of multilateral development bank (MDB) in the 21st century and supported further expansion of the BRICS-led bank’s membership.

In the declaration issued after the 16th BRICS Summit here, the leaders reiterated their commitment to enhancing financial cooperation within BRICS.

“We recognise the widespread benefits of faster, low cost, more efficient, transparent, safe and inclusive cross-border payment instruments built upon the principle of minimizing trade barriers and non-discriminatory access.

“We welcome the use of local currencies in financial transactions between BRICS countries and their trading partners,” it said.

Prime Minister Narendra Modi is here to attend the BRICS Summit.

The BRICS leaders encouraged strengthening of correspondent banking networks within BRICS and enabling settlements in local currencies in line with BRICS Cross-Border Payments Initiative (BCBPI), which is voluntary and non-binding.

BRICS, consisting of Brazil, Russia, India, China and South Africa, has now expanded with five additional members – Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE.

The nations also acknowledged the importance of exploring the feasibility of connecting BRICS countries’ financial markets infrastructure.

“We agree to discuss and study the feasibility of establishment of an independent cross-border settlement and depositary infrastructure, BRICS Clear, an initiative to complement the existing financial market infrastructure, as well as BRICS independent reinsurance capacity, including BRICS (Re) Insurance Company, with participation on a voluntary basis,” it added.

In his address at the 16th BRICS Summit, Modi renewed his call for dialogue and diplomacy as being the only way forward to resolve conflicts, in an unambiguous message to press for the resolution of the Russia-Ukraine war through peaceful negotiations.