The Ministry of External Affairs clarified that BRICS does not currently propose a common currency but is focusing on bilateral trade settlements using local currencies.
There is no proposal for the introduction of a common BRICS currency, rather, the group is focused on settling bilateral trade in local/national currencies, the Ministry of External Affairs (MEA) said on Saturday as the group adopted the ‘New Delhi Declaration’ with consensus.
Secretary (Economic Relations) in the Ministry of External Affairs, Sudhakar Dalela, clarified that there is currently no proposal within BRICS to introduce a common BRICS currency. He noted that discussions on settling trade in local currencies among member nations have been ongoing for a while and are not a new development.
According to Dalela, India views local currency settlement as a practical tool to cut transaction costs in bilateral trade, and sees it as a complement to — rather than a replacement for — the existing global payment and settlement system, with the potential to boost overall global trade.
“There is no proposal in the BRICS for a BRICS currency, as of now… Discussion on trade settlement in local currency has been underway for some time in BRICS; it’s not a new subject. We believe local currency settlement is a practical mechanism to reduce transaction cost in bilateral trade. This has been encouraged as complementary to global payment and settlement system, improving overall global trade across nations,” Secretary Dalela said.