BRICS finance track pushes cross-border payments, local currency settlements

BRICS countries are stepping up efforts to develop practical solutions for cross-border payments, including through greater use of local currencies for trade settlements and investments.

In its Joint Statement issued after the meeting of BRICS Finance Ministers and Central Bank Governors in Mumbai on September 10, the grouping acknowledged the work of the BRICS Payment Task Force on efficient cross-border payment mechanisms.

The statement said the task force has been studying the cross-border interoperability of payment and messaging channels, while also discussing ways to promote trade settlements and investments using BRICS local currencies.

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BRICS members, however, acknowledged that there is “no one-size-fits-all approach”, while respecting national priorities.

The grouping has called for the Payment Task Force to continue its discussions and build on ongoing work to facilitate practical solutions for cross-border payments among BRICS countries.

According to the statement, these solutions should make cross-border payments “fast, low-cost, more accessible, efficient, transparent, and safe.”

The discussions are part of the BRICS Cross-Border Payments Initiative, which draws on guidance provided by BRICS leaders in the Kazan and Rio Declarations.

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The Finance Track has also taken up discussions on settlement and depositary infrastructure. A technical workshop examined the different legal, institutional, regulatory and technical dimensions of settlement and depositary systems across BRICS members.

The grouping said the workshop had deepened understanding across BRICS jurisdictions and would provide a basis for continued voluntary exchange of knowledge, experiences and technical dialogue and cooperation among interested stakeholders.

Separately, BRICS has backed a larger role for the New Development Bank in financing development across the grouping and the Global South. Members encouraged the Bank to mobilise resources, expand local currency financing, strengthen project-preparation facilities, diversify funding sources and support high-impact projects contributing to inclusive and sustainable growth.

The statement also noted progress on the BRICS Multilateral Guarantees initiative, which is being developed with the NDB. BRICS said the initiative has the potential to mobilise private capital, improve creditworthiness and reduce financing costs for development projects in BRICS and the Global South.