Full Breakdown
BRICS Pushes Local-Currency Trade Settlements While Dismissing a Common Currency
By Drooid · · How we work
Core Event: No BRICS Currency Proposal, Focus on Bilateral Settlements
At the 18th BRICS Summit in New Delhi, senior Indian officials confirmed that the grouping has no proposal for a common BRICS currency. Instead, members are advancing discussions on settling bilateral trade in local currencies to cut transaction costs and improve cross-border payment efficiency.
Background & Context
The BRICS bloc—originally Brazil, Russia, India, China and South Africa and expanded in 2024 to include Egypt, Ethiopia, Iran, the United Arab Emirates and Saudi Arabia, with Indonesia joining in 2025—has faced pressure to reduce reliance on the U.S. dollar. Indian Ministry of External Affairs (MEA) Secretary Sudhakar Dalela clarified that a “Euro-like” BRICS currency proposal does not exist. The New Delhi Declaration reaffirmed work by the BRICS Payment Task Force (BPTF) on payment interoperability and local-currency settlements.
Data & Statistics
- India’s Unified Payments Interface (UPI) processes over 250 billion transactions a year and is accepted in 11 countries.
- Russia’s export settlements in dollars or euros have fallen from 85 % to about 11 %.
- The BRICS grouping represents roughly 40 % of global GDP and about one-quarter of world trade.
Official Statements & Responses
- Masoud Pezeshkian (Iran, President) warned that the current financial system is vulnerable to political shocks because of its concentration on a limited number of currencies and advocated for New Development Bank financing in local currencies.
- Prime Minister Narendra Modi stressed that secure sea lanes and open supply routes are essential for global trade.
- External Affairs Minister S. Jaishankar linked technology access, including AI, to economic resilience and called for diversified commercial relationships.
Criticism & Opposition
U.S. President Donald Trump warned that BRICS countries pursuing reduced reliance on the U.S. dollar could face punitive tariffs, describing the bloc as a “little group” challenging U.S. currency dominance.
Verbatim Quotes
- “There is no proposal in the Brics for a Brics currency, as of now,” — Sudhakar Dalela, MEA secretary (economic relations)
- “Today, it (UPI) is also accepted in 11 countries and I would urge the BRICS member countries and partner countries to link our payment systems, trade in each other’s local currencies, make digital trade global and build together for the future emerging technologies,” — Piyush Goyal, industry minister
- “We urgently need two independent mechanisms for strategic agricultural commodities,” — Maxim Reshetnikov, economic development minister
Timeline
- August 12 – Finance Ministers and Central Bank Governors met in Jaipur, noting expanded BRICS membership and reaffirming commitment to cross-border payment work.
- September 10 – Follow-up meeting in Mumbai continued discussions on local-currency settlements.
- September 11 – BRICS finance track session in New Delhi to deepen cooperation on cross-border payments and local-currency trade.
Conflicting Reports & Gaps
Sources uniformly state that no common currency proposal exists; earlier media speculation about a “Euro-like” BRICS currency persists without official backing. Quantitative assessments of cost savings from local-currency settlements remain unprovided.
What’s Next
The September 11 finance-track meeting will review BPTF progress, explore practical solutions for faster, low-cost cross-border payments, and consider mechanisms for agricultural commodity trading. Outcomes are expected to shape the BRICS agenda ahead of the leaders’ summit scheduled for September 11-13.