In a joint statement issued by BRICS Finance Ministers and Central Bank Governors, the bloc reaffirmed its commitment to establishing faster, low-cost, and transparent cross-border payment mechanisms. The discussions, held ahead of the upcoming BRICS Summit in New Delhi, centered on reducing transaction friction and expanding trade settlement in national currencies.
Key Highlights of the Deliberations
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Progress by the BRICS Payment Task Force (BPTF): Member nations formally acknowledged ongoing work by the BPTF to design practical payment solutions. The task force has been analyzing the interoperability of existing national payment channels, messaging networks, and digital infrastructures.
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Focus on Local Currencies: To cushion emerging economies from foreign exchange volatility and reduce intermediary transaction costs, ministers emphasized expanding trade and investment settlements using member countries’ domestic currencies.
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Indian Push for Digital Interoperability: Aligning with the broader agenda, Union Commerce Minister Piyush Goyal urged BRICS nations to link their payment systems—citing India’s Unified Payments Interface (UPI) as a proven model for seamless digital trade integration.
Reforming the Bretton Woods Institutions
Alongside payment innovations, the joint statement reiterated an urgent call to reform global governance structures, specifically the International Monetary Fund (IMF) and the World Bank.
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Representation for EMDEs: The ministers stressed that the voice and voting quotas of Emerging Markets and Developing Economies (EMDEs) must be updated to reflect their growing share of global GDP.
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Leadership Transparency: The group advocated for merit-based, inclusive selection processes for top leadership roles at Bretton Woods institutions to ensure broader regional diversity.
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Support for the New Development Bank (NDB): The bloc pledged continued support for the NDB’s expansion, encouraging the institution to mobilize local currency financing and fund high-impact infrastructure projects across the Global South.
