BRICS Ditches Common Currency for Local-Currency Settlements

The BRICS Summit in New Delhi has brought attention to the grouping's financial cooperation efforts. Instead of creating a common currency, BRICS is focusing on strengthening trade settlements in local currencies and improving cross-border payment mechanisms.

The approach allows member countries to retain their existing monetary systems while making international settlements more efficient. The New Development Bank will play a role in expanding local-currency financing for development projects.

India has maintained that it is not pursuing a policy aimed at weakening the US dollar, contrary to previous speculation. External Affairs Minister S Jaishankar stated there was no proposal for a BRICS currency and that India was not in favor of de-dollarization.