BRICS Shifts Focus from Common Currency to Easing Cross-Border Payments

The BRICS summit in New Delhi has concluded without a common currency to challenge the US dollar. The grouping's focus is now on local-currency settlements, cheaper cross-border payments, and better links between national payment and financial messaging systems.

Sudhakar Dalela, India's Ministry of External Affairs Secretary (Economic Relations), stated that creating a BRICS common currency was not under consideration. Discussions were instead centered on settling bilateral trade in local currencies to reduce transaction costs.

Brazilian President Luiz Inacio Lula da Silva had previously advocated for a BRICS reference currency, but it was never agreed upon by the grouping. Brazil's BRICS Sherpa Mauricio Lyrio clarified in February 2025 that there was no discussion about creating a common currency, and work focused on reducing trade costs through local currencies and cross-border payment mechanisms.

The New Delhi Declaration emphasized greater use of BRICS currencies for trade settlements and investments and continued work towards faster, cheaper, more accessible, and safer cross-border payments. The BRICS Payment Task Force will continue examining practical ways to improve connections between members' payment and messaging systems.