BRICS Meeting Highlights Shift to Local Currencies

BRICS Ministers of Foreign Affairs have emphasized using local currencies in trade, reaffirming economic resilience and financial sovereignty. At their meeting on Monday, the Ministers underscored the importance of the enhanced use of local currencies in financial transactions between the BRICS countries.

BRICS Ministers Push for Use of Local Currencies

The BRICS Ministers of Foreign Affairs convened on June 10 in Nizhny Novgorod, Russia, and issued a joint statement after the meeting. They reaffirmed their commitment to the BRICS strategic partnership, which spans politics, security, economy, finance, and cultural exchanges.

The ministers discussed several topics, including the use of local currencies in trade among BRICS nations, which reduces their reliance on the U.S. dollar. The statement reads:

The Ministers underscored the importance of the enhanced use of local currencies in trade and financial transactions between the BRICS countries.

“They recalled paragraph 45 of the Johannesburg II Declaration tasking the finance ministers and central bank governors of the BRICS countries to consider the issue of local currencies, payment instruments, and platforms, and to report back to the BRICS Leaders,” the statement adds. The Johannesburg declaration was issued following the 15th annual BRICS leaders’ summit in August last year.

The BRICS Ministers of Foreign Affairs also discussed the global financial architecture and food security. The ministers condemned terrorism, emphasized peaceful conflict resolution, and supported African peace initiatives.

The economic bloc, initially formed by Brazil, Russia, India, China, and South Africa, has expanded to include Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) as new members.

The BRICS nations are prioritizing the use of local currencies for trade and financial transactions to reduce reliance on major global currencies, including the U.S. dollar and the euro, and to strengthen economic ties within the bloc. This strategy mitigates exchange rate risks, lowers transaction costs, and stabilizes financial systems.

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