BRICS Nations Back Cross-Border Payment Reforms But De-Dollarisation Remains Elusive
The BRICS nations have reaffirmed their commitment to exploring more efficient cross-border payment mechanisms, but stopped short of calling for a common currency or de-dollarisation.
Finance ministers and central bank governors from Brazil, Russia, India, China, and South Africa met in New Delhi ahead of the BRICS Summit, where they issued a joint statement highlighting the importance of interoperable payment systems and local-currency settlement.
The document, however, does not mention a formal call for de-dollarisation or the replacement of the US dollar with a BRICS currency. Instead, it encourages the BRICS Payment Task Force to continue discussions on pragmatic solutions for efficient cross-border payments.
Iranian President Masoud Pezeshkian made a direct case for moving away from the dollar during the BRICS Business Forum in New Delhi, arguing that the current financial system is vulnerable to political shocks due to its concentration on a limited number of currencies. He suggested expanding the use of national currencies in trade among members and establishing instruments for managing currency risks.
Russian President Vladimir Putin also called for building a 'new, sustainable platform for global growth' at the forum, citing attempts to restrict international trade through sanctions as a major concern for BRICS nations.