BRICS Nations Expand Trade Settlement Using Local Currencies

The BRICS nations have agreed to expand trade settlement using member states' currency, a move seen as reducing reliance on the US dollar. The decision was made at the 18th BRICS Summit in New Delhi, India, where leaders adopted the New Delhi Declaration. The declaration recognizes the efforts of the BRICS Payment Task Force (BPTF) and commits to continuing discussions on linking settlement and financial information networks among member states.

However, India, as the current chair, drew a line by stating that there is no proposal for a single BRICS currency. Sudhakar Dalela, Vice Minister for economic affairs at the Ministry of Foreign Affairs, emphasized that local currency settlement is not meant to replace existing international payment and settlement systems.

The move has been interpreted as a step towards de-dollarization by some analysts, with the South China Morning Post in Hong Kong saying it shows BRICS' shift away from relying on the US dollar. This follows concerns about trust in the dollar, fueled by rising national debt and US reciprocal tariff measures.