BRICS calls for enhanced use of local currencies in trade between member countries

 The BRICS ministers of Foreign Affairs met in Russia and held a plethora of discussions on the enhanced use of local currencies in trade and financial transactions between the BRICS countries

 The BRICS ministers of Foreign Affairs met in Russia’s Nizhny Novgorod on June 10 and held a plethora of discussions, including an important one on the enhanced use of local currencies in trade and financial transactions between the BRICS countries.

At the meeting, the Ministers recognized the need for a comprehensive reform of the global financial architecture.

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“They recalled the 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,” according to the Joint Statement.

Further, the Foreign Ministers reiterated the demand made at COP27 to guarantee that international financial institution reform will prioritise expanding the scope of financing and facilitating easier access to resources.

They anticipated that the 2025 International Bank for Reconstruction and Development shareholder review would be a great success.

As per the Joint statement released by MEA, the leaders also “supported a robust Global Financial Safety Net with a strong quota-based and adequately resourced International Monetary Fund (IMF) at its centre, and also called on “continuing the process of IMF governance reform including creating a new quota formula reflecting the economic size of its membership” during the overall review of quotas.