BRICS Ditches Single Currency, Embracing National Currencies and Cross-Border Payments

BRICS countries are shifting their focus from establishing a common currency to improving cross-border payment systems and increasing the use of national currencies in trade. The move is part of an effort to reduce dependence on the US dollar, as stated by Iranian President Masoud Pezeshkian and Russian President Vladimir Putin at the BRICS Business Forum in New Delhi.

Pezeshkian emphasized the need for greater use of national currencies in trade among BRICS members and enhanced financial cooperation. Putin highlighted changes in the global economic order and the growing role of emerging economies. Finance ministers and central bank governors from BRICS countries have also supported work on a cross-border Payment Task Force, aiming to develop efficient, secure, low-cost, and transparent payment mechanisms.

The task force aims to enable members to maintain their national priorities. The bloc is exploring ways to connect domestic payment systems and settle more trade in local currencies. Systems like India's UPI and Brazil's Pix are being considered for improvement of cross-border connectivity.